Occidental announced today that BlackRock will invest $550 million on behalf of clients in the development of STRATOS, the world’s largest Direct Air Capture (DAC) facility, in Ector County, Texas. Through a fund managed by its Diversified Infrastructure business, BlackRock has signed a definitive agreement to form a joint venture with Occidental through its subsidiary 1PointFive which will own STRATOS.
STRATOS is strategically designed to capture a remarkable 500,000 tonnes of CO2 annually. With construction progress at around 30%, the facility is projected to be commercially operational by mid-2025. The ambitious project is not only a feat in environmental innovation but also a significant contributor to job creation, employing over 1,000 individuals during the construction phase and up to 75 once it becomes operational.
Direct Air Capture (DAC) technology, employed by STRATOS, facilitates the extraction of substantial amounts of CO₂ directly from the atmosphere. This captured carbon can then be securely stored underground in geological formations. The primary aim of STRATOS is to offer cost-effective solutions for industries facing challenges in decarbonization, providing a valuable complement to their existing emissions reduction initiatives. 1PointFive has already secured CO₂ removal credit purchase agreements with notable clients such as Amazon, Airbus, All Nippon Airways (ANA), TD Bank Group, the Houston Astros, and the Houston Texans. The collaboration between Occidental and BlackRock signifies a significant step towards advancing sustainable practices on a global scale.
“We are excited to partner with BlackRock on this transformative facility that will provide a solution to help the world reach net zero,” said Vicki Hollub, President and CEO, Occidental. “This joint venture demonstrates that Direct Air Capture is becoming an investable technology and BlackRock’s commitment in STRATOS underscores its importance and potential for the world. We believe that BlackRock’s expertise across global markets and industries makes them the ideal partner to help further industrial-scale Direct Air Capture.”
“BlackRock is proud to partner with global energy leader Occidental to help build the world’s largest direct air carbon capture facility in Texas,” said Larry Fink, Chairman and CEO, BlackRock. “Occidental’s technical expertise brings unprecedented scale to this cutting-edge decarbonization technology. STRATOS represents an incredible investment opportunity for BlackRock’s clients to invest in this unique energy infrastructure project and underscores the critical role of American energy companies in climate technology innovation.”