Houston-based Oxy subsidiary receives $600M in federal funding for carbon capture project

fed funds

Occidental subsidiary 1PointFive received federal funding to go toward building the South Texas Direct Air Capture Hub. Photo via 1pointfive.com

A subsidiary of Houston-based energy company Occidental has snagged a roughly $600 million federal grant to establish a hub south of Corpus Christi that’ll remove carbon emissions from the air.

The U.S. Department of Energy’s Office of Clean Energy Demonstrations grant, awarded to Occidental subsidiary 1PointFive, will go toward building the South Texas Direct Air Capture (DAC) Hub. It’ll be located on about 106,000 leased acres within a Kleberg County site at the iconic King Ranch. The hub will comprise 30 individual DAC projects.

In a news release, Occidental says the facility will be able to pull at least 1 million metric tons of carbon from the air each year. The hub eventually might remove and store up to 30 million metric tons of CO2 per year, the company says.

The hub initially will create about 2,500 jobs in construction, operations, and maintenance, says Occidental.

Direct air capture removes CO2 from the atmosphere at any location, according to the International Energy Agency. That’s opposed to carbon capture, which generally happens where CO2 is emitted. Either way, the carbon is stored in deep geological formations and used for a variety of purposes, such as making concrete.

In the case of the South Texas hub, carbon dioxide that’s captured and stored will come from industrial sites along the Texas Gulf Coast.

Occidental President and CEO Vicki Hollub says the grant from the U.S. Department of Energy “validates our readiness, technical maturity, and the ability to use Oxy’s expertise in large projects and carbon management to move the technology forward so it can reach its full potential.”

Oxy’s partners in the South Texas project include:

Canada-based clean energy company Carbon Engineering
Australia-based professional services provider Worley
DOE’s Lawrence Livermore National Laboratory in Northern California
Livermore Lab Foundation
Texas A&M University-Kingsville
Coastal Bend Bays & Estuaries Program in Corpus Christi
University of Texas at Austin Gulf Coast Carbon Center

The South Texas DAC Hub was one of two DAC projects awarded as much as $1.2 billion in funding August 11 by the Department of Energy (DOE). The other project is Project Cypress, located in Louisiana’s Calcasieu Parish; it received up to $603 million in funding.

In announcing the DAC funding, U.S. Energy Secretary Jennifer Granholm says her agency “is laying the foundation for a direct air capture industry crucial to tackling climate change — transforming local economies and delivering healthier communities along the way.”

The DOE says the Texas and Louisiana projects represent the world’s largest-ever investment in engineered carbon removal. They’re two of the four regional projects that the DOE plans to finance as part of its DAC initiative, supported by $3.5 billion in federal funding aimed at capturing and storing pollution from carbon dioxide.

Just 18 DAC facilities are currently operating across the U.S., Canada, and Europe, according to a 2022 report from the International Energy Agency.

“No matter how fast we decarbonize the nation’s economy, we must tackle the legacy pollution already in our atmosphere to avoid the worst effects of climate change,” Granholm said in 2022.

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HETI discusses Houston’s energy leadership, from pathways to progress

The View From HETI

In 2024, RMI in collaboration with Mission Possible Partnership (MPP) and the Houston Energy Transition Initiative (HETI) mapped out ambitious scenarios for the region’s decarbonization journey. The report showed that with the right investments and technologies, Houston could achieve meaningful emissions reductions while continuing to power the world. That analysis painted a picture of what could be possible by 2030 and 2050.

Today, the latest HETI progress report shows Houston is not just planning anymore — the region is delivering.

Real results, right now

The numbers tell a compelling story. Since 2017, HETI’s member companies have invested more than $95 billion in low-carbon infrastructure, technologies, and R&D. That’s not a commitment for the future—that’s capital deployed, projects built, and operations transformed.

The results showed industry-wide reductions of 20% in total Scope 1 greenhouse gas emissions and a remarkable 55% decrease in methane emissions from global operations. These aren’t projections—they’re actual reductions happening across refineries, chemical plants, and production facilities throughout the Houston region.

How Houston is leading

What makes Houston’s approach work is its practical, technology-driven focus. Companies across the energy value chain are implementing solutions that work today:

Electrifying operations and integrating renewable power

Deploying advanced methane detection and elimination technologies

Upgrading equipment for greater efficiency

Capturing and storing carbon at commercial scale

Developing breakthrough technologies from geothermal to advanced nuclear

Take ExxonMobil’s Permian Basin electrification, Shell and Chevron’s lower-carbon Whale project, or BP’s massive Tangguh carbon capture project in Indonesia. These aren’t pilot programs—they’re multi-billion dollar investments demonstrating that decarbonization and energy production go hand in hand.

From scenarios to strategy

The RMI analysis identified three key pathways forward: enabling operational decarbonization, accelerating low-carbon technology scale-up, and creating carbon accounting mechanisms. Houston’s energy leaders have embraced all three.

The momentum is undeniable. Companies are setting ambitious 2030 and 2050 targets with clear roadmaps. New projects are reaching final investment decisions. Innovation ecosystems are flourishing. And critically, this progress is creating jobs and driving economic growth across the region.

Why this matters

Houston isn’t just managing the energy transition—it’s proving what’s possible when you combine world-class engineering expertise, integrated infrastructure, access to capital, and a commitment to both energy security and emissions reduction.

The dual challenge of delivering more energy with less emissions isn’t theoretical in Houston—it’s operational reality. Every ton of CO₂ reduced, every efficiency gain achieved, and every technology deployed demonstrates that we can meet growing global energy demand while making measurable progress on climate goals.

The path forward

The journey from last year’s scenarios to this year’s results shows something crucial: when industry, policymakers, and communities align around practical solutions, transformation accelerates.

Houston’s energy leadership isn’t about choosing between reliable energy and environmental progress, it’s about delivering both. And based on the progress we’re seeing, the momentum is only building.

———

Read the full analysis here. This article originally appeared on the Greater Houston Partnership's Houston Energy Transition Initiative blog . HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

TotalEnergies to supply solar power to new Google data centers in Texas

power deal

French energy company TotalEnergies, whose U.S. headquarters are in Houston, has signed power purchase agreements to supply 1 gigawatt of solar power for Google data centers in Texas over a 15-year span.

The power will be generated by TotalEnergies’ two solar farms that are being developed in Texas. Construction on the company’s Wichita site (805 megawatt-peak, or MWp) and Mustang Creek site (195 MWp) is scheduled to start in the second quarter of this year.

Marc-Antoine Pignon, U.S. vice president for renewables at TotalEnergies, said in a press release that the 1-gigawatt deal “highlights TotalEnergies’ strategy to deliver tailored renewable energy solutions that support the decarbonization goals of digital players, particularly data centers.”

The deal comes after California-based Clearway, in which TotalEnergies holds a 50 percent stake, secured an agreement to supply 1.2 gigawatts of solar power to Google data centers in Texas and other states.

“Supporting a strong, stable, affordable grid is a top priority as we expand our infrastructure,” said Will Conkling, director of clean energy and power at Google. “Our agreement with TotalEnergies adds necessary new generation to the local system, boosting the amount of affordable and reliable power supply available to serve the entire region.”

TotalEnergies maintains a 10-gigawatt-capacity portfolio of onshore solar, wind and battery storage assets in the U.S., including 5 gigawatts in the territory served by the Electric Reliability Council of Texas (ERCOT).

Other clean energy customers of TotalEnergies include Airbus, Air Liquide, Amazon, LyondellBasell, Merck and Microsoft.

UH lands $1.5M for endowed professorship and energy workforce initiative

funding the future

The University of Houston announced two major funding awards last month focused on energy transition initiatives and leadership.

Longtime UH supporters Peggy and Chris Seaver made a $1 million gift to the university to establish the Peggy and Chris Seaver Endowed Aspire Professorship, a faculty position “designed to strengthen UH Energy and expand the university’s leadership in addressing the most pressing global energy challenges,” according to a news release.

The new role is the third professorship appointed to UH Energy. The professorship can qualify for a dollar-for-dollar match through the Aspire Fund Challenge, a $50 million matching initiative launched by an anonymous donor.

“This gift will be key to cementing UH’s role as The Energy University,” Ramanan Krishnamoorti, vice president for energy and innovation at UH, said in the release. “By recruiting a highly respected faculty member with international experience, we are further elevating UH Energy’s global profile while deepening our impact here in the energy capital of the world.”

Also in January, the university shared that it would be joining the Urban Enrichment Institute (UEI) and the City of Houston to help train the next generation of energy workers, thanks to a $560,000 grant.

The Gulf Research Program of the National Academies of Sciences, Engineering and Medicine awarded the funding to the UEI, a nonprofit that supports at-risk youth. It will allow the UEI to work with UH’s Energy Transition Institute and the Houston Health Department to launch “Spark Energy Futures: Equipping Youth and Communities for the Energy Transition.”

The new initiative is designed for Houstonians ages 16-25 and will provide hands-on experience, four months of STEM-based training, and industry-aligned certifications without a four-year degree. Participants can also earn credentials and job placement support.

“Our energy systems are going through unprecedented changes to address the growing energy demands in the United States, Gulf Coast and Texas,” Debalina Sengupta, assistant vice president and Chief Operating Officer of ETI at UH, said in a news release.“To meet growing demands, the energy supply, transmission, distribution and markets associated with an ever-increasing energy mix needs a workforce skilled in multidimensional aspects of energy, as well as the flexibility to switch as needed to provide affordable, reliable and sustainable energy to our population.”

Keith Cornelius, executive director of UEI, added that he expects about 50 students to participate in the program’s inaugural year and that the program is looking to attract those interested in entering the energy workforce without a college degree.

“We’re looking to have tremendous success with the Energy Transition Institute,” Cornelius said. “This program is a testament to what can be done between a community-based organization, a major university and the city.”

The award was part of a $2.7 million grant that will fund four projects in the Gulf region, including two others in Texas. The Gulf Research Program Awards also granted $748,175 to launch the “Building the South Texas Energy Workforce” initiative in in Kingsville, Texas and $728,000 for “Texas Green Careers Academy: Activating a New Generation of Energy Professionals” in Austin.

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