EPA Issues First Three Draft Carbon Sequestration Permits To Oxy Low Carbon Ventures For DAC Project
- The EPA issued three draft permits for Oxy Low Carbon Ventures’ carbon storage wells in Texas, the first of their kind in the state.
- These wells will store 722,000 metric tons of CO2 annually, captured from the Stratos direct air capture plant.
- Public comments on the permits are open until October 7, with the EPA emphasizing protection of underground water sources.
The U.S. Environmental Protection Agency (EPA) has issued three draft permits to Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental Petroleum, for the underground storage of carbon dioxide. These are the first carbon sequestration permits of their kind in Texas, marking a significant development in carbon storage efforts under the Safe Drinking Water Act’s Class VI Underground Injection Control program.
The permits would allow OLCV to operate three wells in Ector County, Texas, designed to store 722,000 metric tons of CO2 annually. The CO2 will be captured from the nearby Stratos direct air capture (DAC) plant, which aims to capture 500,000 metric tons of CO2 per year once operational in mid-2025. Companies like Microsoft and Amazon have already committed to purchasing large quantities of captured carbon from Stratos, with Microsoft securing 500,000 tons over six years and Amazon acquiring 250,000 tons over ten years.
BlackRock’s recent $550 million investment into Stratos, through its joint venture with Occidental subsidiary 1PointFive, underscores growing confidence in the DAC project. This investment follows the U.S. government’s $1.2 billion funding for DAC hubs in Texas and Louisiana, which further demonstrates the federal commitment to scaling carbon removal technologies.
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The EPA’s review process included a thorough evaluation of the wells’ impact on local underground water sources, ensuring that the operation meets safety and environmental protection standards. “Our review confirmed that the project does not pose any significant risks to underground water sources,” said the EPA.
The draft permits are now open for public comment until October 7, 2024. A public hearing will be held on October 3 to gather additional feedback from the community.
