Stratos will be Occidental’s first direct air capture hub, designed to remove up to 500,000 tonnes of CO2 annually.
JP Morgan and Palo Alto Networks have already secured 60,000 tonnes of CO2 removal credits from the project.
The company is advancing a second DAC facility in South Texas with backing from Adnoc’s XRG and a $650 million DOE grant.
Occidental is preparing to launch operations at its Stratos direct air capture (DAC) hub in Ector County, Texas, by the end of 2025. CEO Vicky Hollub confirmed during the company’s quarterly earnings call that two capture trains have transitioned to operations and begun wet commissioning with water circulation.
Stratos will have the capacity to capture 500,000 tonnes of atmospheric CO2 annually, marking a major milestone in Occidental’s carbon management strategy. The company has already secured significant carbon dioxide removal (CDR) credit sales, including 50,000 tonnes purchased by JP Morgan and 10,000 tonnes by Palo Alto Networks.
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The project’s progress follows last month’s U.S. decision to maintain the 45Q tax incentive for carbon capture and sequestration under the One Big Beautiful Bill Act. Hollub noted, “The new law levels the playing field between carbon storage and utilization pathways like DAC to EOR. Both can and likely will play an important role across global energy supply chains and carbon management.”
In parallel, Occidental is developing a second DAC facility in South Texas in partnership with Abu Dhabi National Oil Company’s investment arm, XRG. Supported by a U.S. Department of Energy grant of up to $650 million and more than $500 million from XRG, the project is moving toward a final investment decision, with an initial focus on pre-sales of carbon credits.
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