Oxy's cleantech arm scores Amazon DAC investment

carbon capture client

Amazon has agreed to buy 250,000 metric tons of carbon removal credits from 1PointFive’s first DAC plant. Photo via 1pointfive.com

Houston-based cleantech company 1PointFive is among the recipients of e-commerce giant Amazon’s first investments in carbon-fighting direct air capture (DAC).

Amazon has agreed to buy 250,000 metric tons of carbon removal credits from Stratos, 1PointFive’s first DAC plant, over a 10-year span. That commitment is equivalent to the amount of carbon stored naturally across more than 290,000 acres of U.S. forecasts, says Amazon.

Financial terms of the deal weren’t disclosed.

1PointFive is a carbon capture, utilization, and sequestration (CCUS) subsidiary of Houston-based energy company Occidental Petroleum.

The carbon captured for Amazon will be stored deep underground in saline aquifers — large geological rock formations that are saturated in saltwater.

As Amazon explains, DAC technology filters CO2 from the atmosphere and stores it in underground geological formations. Aside from being stored, removed carbon can be used to make building materials like bricks, cement, and concrete.

1PointFive is constructing its first DAC plant in Ector County, which is anchored by Odessa. The facility is expected to be the world’s largest DAC plant, capturing up to 500,000 tons of CO2 per year. Amazon Web Services (AWS) will provide real-time performance data for the plant.

“Amazon’s purchase and long-term contract represent a significant commitment to direct air capture as a vital carbon removal solution,” Michael Avery, president and general manager of 1PointFive, says in a news release. “We are excited to collaborate with Amazon to help them achieve their sustainability goals.”

1PointFive broke ground on the Stratos plant in April. Its project partners include British Columbia-based Carbon Engineering and Australia-based Worley. The plant is expected to be fully operational by mid-2025.

1PointFive envisions establishing more than 100 DAC facilities around the world by 2035.

The Amazon deal isn’t the only major deal for 1Point5 this summer.

In August, the U.S. Department of Energy (DOE) announced a $600 million grant for a 1PointFive-operated DAC hub that will be built in South Texas. The more than 100,000-acre hub, comprising 30 individual DAC projects, eventually may remove and store up to 30 million metric tons of CO2 per year.

Also in August, Japan’s All Nippon Airways (ANA) said it reached an agreement with 1PointFive to buy 10,000 metric tons of carbon removal credits per year over a three-year period starting in 2025. The credits will be generated by 1PointFive’s Stratos plant.

In the U.S., DAC has gotten a huge boost from the federal government. The Inflation Reduction Act, passed in 2022, includes tax credits for capturing and storing carbon via DAC.

The International Energy Agency says 27 DAC plants have been commissioned around the world, with at least 130 more in the development stage. One forecast predicts the value of the global market for DAC systems will climb past $2.3 billion by 2030.

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Occidental says its all-cash acquisition of Canada-based Carbon Engineering is set to close by the end of 2023. Photo via carbonengineering.com

Oxy acquires carbon capture co. in $1.1B deal

betting on dac

In yet another bet on direct carbon capture (DAC), Houston-based Occidental has agreed to purchase a DAC technology company for $1.1 billion.

Occidental says its all-cash acquisition of Canada-based Carbon Engineering is set to close by the end of 2023. Carbon Engineering was founded in 2009.

Under the deal, Carbon Engineering would become a wholly owned subsidiary of Oxy Low Carbon Ventures, the investment arm of Occidental. Carbon Engineering employees will work with teams at Occidental and its low-carbon subsidiary, 1PointFive, on DAC technology. The company’s R&D and innovation units will remain in Squamish, British Columbia.

Occidental has been a key DAC partner of Carbon Engineering since 2019.

“We look forward to continuing our collaboration with the Carbon Engineering team, which has been a leader in pioneering and advancing DAC technology,” Vicki Hollub, president and CEO of Occidental, says in an August 15 news release. “Together, Occidental and Carbon Engineering can accelerate plans to globally deploy DAC technology at a climate-relevant scale and make DAC the preferred solution for businesses seeking to remove their hard-to-abate emissions.”

Billionaire Warren Buffett’s Berkshire Hathaway conglomerate owns about one-fourth of the shares of publicly traded Occidental.

In conjunction with Carbon Engineering, Occidental’s 1PointFive is building Stratos, the world’s largest DAC plant. The Ector County facility, scheduled to begin operating in mid-2025, is projected to extract up to 500,000 metric tons of carbon dioxide from the air each year. It’s anticipated that Stratos will employ more than 1,000 people during construction and up to 75 people once the plant is up and running.

Occidental and Carbon Engineering are adapting Stratos’ engineering and design features for a DAC plant to be built on a site at South Texas’ King Ranch. The South Texas DAC Hub, which is on track to create about 2,500 jobs, recently received a roughly $600 million grant from the U.S. Department of Energy (DOE).

1PointFive plans to open as many as 135 DAC facilities around the world by 2035, with the capacity to capture 100 million metric tons of carbon dioxide (CO2) per year.

DAC technology pulls carbon dioxide emissions from the atmosphere at any location and permanently stores the CO2 or uses it for other purposes. By contrast, carbon capture sucks carbon dioxide from the air near where emissions are generated and then permanently stores the CO2 or uses it for other purposes.

A DAC system vacuums about 50 percent to 60 percent of the carbon dioxide from the air that passes through the system’s fans.

DAC “is shaping up to be a key component of meeting net-zero emissions goals in the United States,” according to the National Renewable Energy Laboratory.

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Energy Tech Nexus announces international startups to pitch at Pilotathon

Ready, Set, Pitch

Energy Tech Nexus will host its Pilotathon and Showcase as part of Houston Energy & Climate Startup Week next Tuesday, Sept. 16, featuring insightful talks from industry leaders and pitches from an international group of companies in the clean energy space.

This year's event will center around the theme "Energy Access and Resilience." Attendees will hear pitches from nine Pilotathon pitch companies, as well as the 14 companies that were named to Energy Tech Nexus' COPILOT accelerator earlier this year.

COPILOT partners with Browning the Green Space, a nonprofit that promotes diversity, equity and inclusion (DEI) in the clean energy and climatetech sectors. The Wells Fargo Innovation Incubator (IN²) at the National Renewable Energy Laboratory backs the COPILOT accelerator, where companies are tasked with developing pilot projects for their innovations.

The nine Pilotathon pitch companies include:

Ontario-based AlumaPower, which has developed a breakthrough technology that converts the aluminum-air battery into a "galvanic generator," a long-duration energy source that runs on aluminum as a fuel
Calgary-based BioOilSolv, a chemical manufacturing company that has developed cutting-edge biomass-derived solvents
Atlanta-based Cultiv8 Fuels, which creates high-quality renewable fuel products derived from hemp
Newfoundland-based eDNAtec Inc., a leader in environmental genomics that analyzes biodiversity and ecological health
Oregon-based Espiku Inc., which designs and develops water treatment and mineral extraction technologies that rely on low-pressure evaporative cycles
New York-based Fast Metals Inc., which has developed a chemical process to extract valuable metals from complex toxic mine tailings that is capable of producing iron, aluminum, scandium, titanium and other rare earth elements using industrial waste and waste CO2 as inputs
New Jersey-based Metal Light Inc., which is building a circular, solid metal fuel that will serve as a replacement for diesel fuel
Glasgow-based Novosound, which designs and manufactures innovative ultrasound sensors using a thin-film technique to address the limitations of traditional ultrasound with applications in industrial, medical and wearable markets
Calgary-based Serenity Power, which has developed a cutting-edge solid oxide fuel cell (SOFC) technology

The COPILOT accelerator companies include:

Accelerate Wind
Aquora Biosystems Inc.
EarthEn
Electromaim
EnKoat
GeoFuels
Harber Coatings Inc.
Janta Power
NanoSieve
PolyQor Inc.
Popper Power
Siva Powers America
ThermoShade
V-Glass Inc.

Houston energy company to invest $1B in U.S. electric grid manufacturing

grid boost

Hitachi Energy, whose U.S. headquarters is in Houston, has earmarked more than $1 billion to manufacture infrastructure for the U.S. electric grid, which is coping with greater power demand from data centers and AI platforms.

Of that sum, $457 million is dedicated to building a power transformer factory in Virginia. Hitachi Energy said it’ll be the largest facility of its kind in the U.S.

“Power transformers are a linchpin technology for a robust and reliable electric grid and winning the AI race. Bringing production of large power transformers to the U.S. is critical to building a strong domestic supply chain for the U.S. economy and reducing production bottlenecks, which is essential as demand for these transformers across the economy is surging,” said Andreas Schierenbeck, CEO of Switzerland-based Hitachi Energy, which generates revenue of about $16 billion.

The Hitachi announcement aligns with various priorities of the Trump administration. The White House is promoting more U.S.-based manufacturing, more power to accommodate data centers and AI, and greater use of U.S. energy resources.

“If we are going to win the AI race, reindustrialize, and keep the lights on, America is going to need a lot more reliable energy,” U.S. Energy Secretary Chris Wright said.

Texas still has its best solar days ahead of it, even as federal tax credit sunsets

Guest Column

If you follow energy policy, you already know that Congress repealed the 30% residential solar tax credit. This poses a significant challenge for continued growth in the market. It also provides an opportunity for the industry to grow in a smart, consumer-friendly way. That’s why in Texas, the story is what happens next: The state and the market are continuing to make going solar much simpler, better, and cheaper.

Policies are moving in the right direction. For example, starting this month, a bipartisan permitting reform takes effect that will cut red tape for home solar and batteries. It lets licensed third-party professionals review plans and perform inspections, requires agencies to post standardized rules and fees online, and allows homeowners to start work once those third-party approvals are submitted. It also shifts negligence liability to the third-party reviewer, thereby reducing municipal risk while accelerating safe, code-compliant installs. In plain English: fewer bottlenecks, faster installs, and lower “soft costs.”

As a result, Houston is already piloting the National Renewable Energy Lab’s free SolarAPP+ to auto-approve standard solar designs, which cuts roughly 12 days from typical timelines. Independent analyses estimate that these automated permitting rules could trim rooftop solar costs by thousands. In other words, even small, costless policy changes like this can save you almost as much money as the huge solar tax credit did, and these great reforms are happening all the time, and they make the process much more convenient and reliable.

While Texas is making solar simpler, it’s also helping consumers have a good experience when going solar. As of this month, Texas law now also requires solar salespeople to register with the Texas Department of Licensing and Regulation. The same bill standardizes contracts and provides for mandatory disclosures of upfront cost and financing terms. The whole solar industry benefits when customers have a good solar experience. Word of mouth is vital to keeping solar shining.

There's yet another pro-solar Texas law that's also going into effect this month: in addition to SB 1202 (streamlining solar permits) and SB 1036 (regulating solar sales tactics), the legislature is also supporting the dissemination of information about your options when going solar via SB 1697. You can read more about these three brand-new pro-solar state laws here.

The end of the solar tax credit is not the end of the solar industry. Far from it.

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Dori Wolf is Senior Texas Program Associate for Solar United Neighbors, a vendor and neutral nonprofit with more than 15 years helping people go solar. Their free Solar Help Desk walks you through the details. Also check out their Go Solar Guide and Solar Owner’s Manual.

Solar United Neighbors also helps you find the best retail electricity plan through its partnership with Texas Power Guide.

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