Occidental Petroleum Corporation's (OXY.US) Texas Direct Air Capture Center has received funding from the U.S. Energy Corp. of up to $500 million.

On Thursday, Occidental Petroleum Corporation (OXY.US) announced that its subsidiary 1PointFive has secured up to $500 million in funding from U.S. Energy Corp.'s Clean Energy Fuels Corp. Demonstration Office to support the development of a Direct Air Capture (DAC) facility in South Texas. Occidental Petroleum Corporation stated that the initial $50 million contract will advance 1PointFive's ongoing work at the South Texas DAC facility, including engineering, permitting, long-term equipment procurement, and continued community engagement. The total funding value for the South Texas DAC facility is expected to reach up to $500 million, for the initial DAC facility on site, and could potentially increase to $650 million for the development of an expanded regional carbon network in South Texas. The South Texas Direct Air Capture facility plan includes a DAC facility with an initial carbon removal capacity of 500,000 tons per year, with plans to expand to over 1 million tons per year in the future. Occidental Petroleum Corporation stated that the site has the capability to increase carbon removal capacity to 30 million tons per year through DAC and safely store 300,000 tons of carbon dioxide in saline formations.