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DOE doles out $36M to Oxy for carbon capture hubs

Occidental subsidiary 1PointFive received federal funding — and more trending Houston energy transition news. Photo via 1pointfive.com

Two carbon dioxide sequestration hubs being built by a subsidiary of Houston-based Occidental Petroleum have received a total of $36 million in funding from the U.S. Department of Energy.

The two 1PointFive projects that gained federal funding are the Bluebonnet Sequestration Hub, located in the Houston area’s Chambers County, and the Magnolia Sequestration Hub, located in Allen Parish, Louisiana.

The more than 55,000-acre Bluebonnet site will potentially store about 1.2 billion metric tons of carbon dioxide. The 26,000-acre Magnolia hub will offer about 300 million metric tons of CO2 storage capacity.

“We are using our over 50 years of carbon management expertise and experience developing projects at scale to deliver a proven solution that helps advance industrial decarbonization,” Jeff Alvarez, president of 1PointFive Sequestration, says in a news release.

The 1PointFive hubs are aimed at helping hard-to-decarbonize industries achieve climate goals.

The carbon sequestration process captures carbon dioxide in the air and then stores it. The 1PointFive hubs will inject captured CO2 into underground geological formations.

Fortune Business Insights predicts the value of the global market for carbon capture and sequestration (CCS) will climb from $3.54 billion in 2024 to $14.51 billion by 2032.

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A View From HETI

Shell's Woodcreek campus is home to about 67,000 workers. Photo courtesy HOK

Energy giant Shell has put its U.S. headquarters in Houston’s Energy Corridor on the market and is exploring the sale of its U.S. chemical business.

Green Street News reported Shell just listed its longtime Energy Corridor campus at 150 N. Dairy Ashford Road. The asking price is $325 million, The Real Deal reported. Shell plans to lease back half of the nearly 1.5 million-square-foot Woodcreek campus for 15 years.

A sale-leaseback deal could transform the 43.6-acre campus into a multitenant hub, CoStar News reported.

“Houston is a critical hub for Shell globally and the headquarters of our U.S. businesses,” a Shell spokesperson told the Houston Business Journal. “We remain committed to Houston and are evaluating opportunities to optimize our Woodcreek campus as part of our ongoing review of workplace needs while maintaining a strong presence in the city.”

Shell occupied its first building at the West Houston campus in 1980. The company employs more than 6,000 people in Texas.

Shell is one of the highest-profile businesses occupying space in the Energy Corridor. It’s home to 67,000 workers, more than 27 million square feet of office and mixed-use space, and 3.8 million square feet of retail and restaurant space.

Shell considers $8B sale of chemical business

As the company seeks to unload its Woodcreek campus, The Financial Times reported Shell is looking into selling its U.S. chemical business. The price tag: $8 billion.

Potential buyers include Spring-based ExxonMobil and Houston-based LyondellBasell.

Shell operates four chemical plants in Texas, Louisiana and Pennsylvania, producing an array of chemicals for use in plastics, detergents and pharmaceuticals.

Shell CEO Wael Sawan said last year that the company had spent $45 billion in capital “that is underperforming for us,” split between its chemical business and renewable energy arm.

Shell also agreed to sell its solar and wind power business in India this summer. Read more here.

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