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.

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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In $2 billion deal, NVIDIA takes 20% stake in Woodlands-based Lancium

power play

With an initial investment of $2 billion, AI chip manufacturer NVIDIA just acquired a 20 percent stake in The Woodlands-based Lancium, which develops large-scale campuses that combine AI data centers and onsite power supplies.

Lancium recently announced the investment but didn’t disclose the dollar amount. The Information news website reported NVIDIA’s investment totaled $2 billion, with the possibility of an additional $1 billion if Lancium achieves certain milestones.

Dealroom.co calls NVIDIA’s investment a “form of supply-chain insurance.”

NVIDIA “is gaining exposure to the scarce physical assets that determine whether its chips can be deployed,” Dealroom.co says. “The move makes Nvidia look less like a pure chip company and more like an allocator of infrastructure capacity.”

Investment precedes possible IPO in 2027

Thanks to NVIDIA’s cash infusion, Lancium and its portfolio of land and power connections carry an enterprise value of about $10 billion, according to The Information.

The investment should enable Lancium to expand as it explores a potential IPO next year, The Information reported.

Neither Lancium nor NVIDIA is responding to requests for comment about the deal.

Lancium’s marquee project is a 1,000-acre data center and power generation campus in West Texas for the $500 billion Stargate initiative. Stargate, a joint venture comprising MGX, OpenAI, Oracle and SoftBank, is building data centers equipped to handle AI-level workloads.

“Epicenter of energy and AI infrastructure”

Founded in 2017, Lancium has 4 gigawatts of leased capacity and a more than 15-gigawatt development pipeline. In 2024, Blackstone Energy Transition Partners invested about $500 million in Lancium, giving Blackstone a roughly 50 percent stake.

“This partnership with NVIDIA is a strong testament to Lancium’s position at the epicenter of energy and AI infrastructure … . We look forward to continuing to partner with these leading companies to help power the next generation of AI innovation,” Bilal Khan, senior managing director at Blackstone, said in a release.

Through the NVIDIA partnership, Lancium’s data center and power generation campuses will use the tech company’s “AI factory” platform, including software, computing, and networking capabilities. This will give NVIDIA customers and partners access to power capacity that supports heavy AI workloads.

“We have spent years assembling the power, the land, and the infrastructure expertise needed to deliver AI data center capacity at a scale the world has never seen,” Michael McNamara, co-founder and CEO of Lancium, said in the release.

“Partnering with NVIDIA — the definitive technology platform for AI computing — ensures that every campus in our portfolio will be deployed with the industry’s most advanced technology and that NVIDIA’s customers will have access to the capacity they need to compete and lead in the AI era.”

U.S. oil giant Chevron confirms it will expand operations in Venezuela

O&G News

Oil giant Chevron confirmed that it will expand operations in Venezuela after President Donald Trump announced an ambitious deal to develop the nation’s oil reserves and give the Pentagon a stake in the profits.

Chevron, the only U.S. oil company with a major presence in Venezuela, said Wednesday that it has been assigned additional acreage in the Orinoco Belt, where it has active operations. The company plans to invest more than $7 billion over the next five years, with the goal of more than doubling its current production to about 600,000 barrels a day.

“Chevron’s history in Venezuela spans more than a century, and our expanded position reflects our confidence in the country’s deep resource potential,” CEO Mike Wirth said in a prepared statement.

Venezuela holds the world's largest proven reserves, totaling more than 303 billion barrels of crude oil, according to OPEC's 2025 Annual Statistical Bulletin. Saudi Arabia is a distant second with 267 billion barrels.

Yet because Venezuela's energy infrastructure is severely degraded and the nation is operating under international sanctions, its daily production is just over 1 million barrels, compared with the 10 million to 11 million barrels that Saudi Arabia produces each day. The U.S. produces almost 14 million barrels per day.

Chevron, the second-largest U.S. oil company, has had a presence in Venezuela since 1923.

“President Trump’s mission in Venezuela is straightforward. The mission is to bring peace, freedom, opportunity and prosperity to the people of Venezuela,” Energy Secretary Chris Wright said Wednesday in Caracas, Venezuela. “I believe the deals that are signed today – tens of billions of dollars of investment, ultimately many thousands of jobs – are critical in starting this ball rolling of peace, opportunity and prosperity for everyone in Venezuela.”

The White House confirmed Monday that it is partnering with North American Blue Energy Partners, NABEP, as part of Trump ’s push to tap into Venezuela’s oil industry.

Yet the agreement has been met with skepticism from energy experts who say it will take years to revive Venezuela’s oil industry, which is in disarray after years of neglect.

There are also questions about whether Venezuela’s acting president, Delcy Rodríguez, has the authority to give NABEP 100-year rights over 17 oil fields with reserves of 65 billion barrels — and whether future Venezuelan or American administrations would overturn the agreement.

Venezuela's constitution states that arrangements like the one that the United States announced this week must be approved by the National Assembly, which has not happened, wrote Ian Vásquez, vice president for international studies at the Cato Institute.

“The deal lacks legitimacy since it was agreed to with a dictatorship that has clung to power for decades through violence and by committing what was probably the largest electoral fraud in Latin American history in 2024,” Vásquez wrote. “The agreement was also reached under overwhelming pressure, military and otherwise, from the United States. As such, any future Venezuelan democracy will question the deal, thus undermining confidence in the current arrangement.”

Wright on Wednesday told reporters during a joint press conference with Rodríguez pushed back on criticism.

“This is a deal that’s a massive win and benefit for the people of the United States of America and a massive win for the people of Venezuela," he said. "Because what it’s going to do is take resources that are underground, not helping anyone, and invest capital and money and technology and bring them to the surface to better the lives of Venezuelans, better supply energy to Americans.”

Trump has eyed Venezuela’s oil since the January capture of then-President Nicolás Maduro and has pressed to get U.S. businesses back into the country. “We have Exxon going in, we have Chevron going in. We have our big oil companies going in,” he said that same month.

He suggested again on Monday that other U.S. oil majors were preparing for a return, though other than Chevron, there is no evidence of that.

Exxon Mobil CEO Darren Woods said in January that Venezuela was “ uninvestable.” An Exxon spokesman said this week that “nothing has changed.”

The history of U.S. oil majors in Venezuela explains the hesitation.

Venezuela nationalized its oil industry in 1976 and created the state-owned company Petróleos de Venezuela S.A. A second nationalization occurred in 2007, when President Hugo Chávez pushed foreign oil companies into state-controlled joint ventures and seized the assets of companies that refused. Chevron agreed to a joint venture. Others, including Exxon and ConocoPhillips, refused, and Venezuela took their assets.

Trump has said that the agreement with Venezuela would “substantially lower” gasoline prices in the U.S. However, analyst have repeatedly warned that Venezuela’s dilapidated oil infrastructure will require years of restoration work and tens of billions of dollars to resuscitate.

“It could take 2 to 4 years to get new greenfield facilities online in the Orinoco region,” Amy Jaffe, director of the Global Energy, Climate, and Sustainability Lab at New York University, said in an email. "Other places where there is no pipeline and other kinds of support infrastructure could take longer.”

Meanwhile, the national average price for a gallon of regular gasoline jumped overnight to $4.12, according to the motor club AAA. That is 93 cents more than it cost at this point last year.

Fervo Energy strikes largest-ever power deal with Google

geothermal milestone

In its largest-ever purchase agreement, Houston-based geothermal company Fervo Energy will supply 396 megawatts of power to tech powerhouse Google.

The deal includes an option for Google to expand capacity by about 600 megawatts, for a total of 1 gigawatt, by June 2030, according to a news release from Fervo. Financial terms weren’t disclosed.

Google will purchase carbon-free energy from Fervo for a potential data center in Utah, where Fervo is building its more than $2 billion Cape Station geothermal project.

Fervo applies oil-and-gas fracking technology to create geothermal reservoirs and generate electricity.

The first phase of Cape Station is expected to begin delivering geothermal power by late 2026, reaching about 100 megawatts of capacity by early 2027. The second phase, set for completion in 2028, will add 400 megawatts of capacity.

Fervo co-founder and CEO Tim Latimer said in a release that the Google agreement supports enhanced geothermal systems as a key power source for “the next generation of computing infrastructure.”

“The next chapter of advanced power generation technology is being written in Utah,” said Lucia Tian, director of advanced energy technologies at Google.

The Fervo-Google agreement builds on an existing partnership. Fervo’s Project Red pilot development in Nevada, which came online in 2023, supplies power to the local grid. Users of the grid power include Google’s data centers in Nevada.

Fervo subsequently signed a 115-megawatt purchase agreement with Google and NV Energy. The deal enabled Google to bring more geothermal energy to the Nevada grid while insulating everyday customers from the project’s costs.

The latest Google deal is part of the ongoing expansion of Cape Station beyond its initial 100-megawatt phase. Fervo says Cape Station will be the world’s largest enhanced geothermal facility.

The Google agreement comes during a milestone year for Fervo, which was founded in 2017. In May, Fervo’s IPO raised $2.2 billion. The company, whose early investors include Bill Gates, is now valued at $5.65 billion.