• XRG eyes $500M investment in a 500,000 tonne-per-year Direct Air Capture (DAC) facility developed by Occidental subsidiary 1PointFive.
• Strategic DAC Hub to be located in Kleberg County, Texas, with potential for 3 billion tonnes of CO₂ storage across 165 square miles.
• Backed by U.S. DOE, the project aligns with national energy goals and signals growing investor confidence in DAC as a scalable, investable climate solution.

Occidental and ADNOC’s investment arm, XRG, have signed a Strategic DAC Framework Agreement to evaluate a joint venture for a large-scale Direct Air Capture (DAC) facility in South Texas. Under the agreement, XRG may invest up to $500 million in the project, which is led by Occidental’s subsidiary, 1PointFive.

The planned DAC facility—part of the South Texas DAC Hub—aims to capture 500,000 tonnes of carbon dioxide annually. The site sits on King Ranch in Kleberg County, strategically located near Gulf Coast energy infrastructure for efficient CO₂ transport and storage.

“We are proud to advance our decades-long partnership with ADNOC and XRG on our South Texas DAC Hub, which we believe will deliver game-changing technology to support U.S. energy independence and global goals,” said Occidental President and CEO Vicki Hollub.

Occidental’s first DAC project, STRATOS in West Texas, remains on track to launch commercial operations in 2025. The company’s DAC technology has seen significant de-risking, and the U.S. Department of Energy has awarded up to $650 million to support the South Texas development.

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“Agreements like this, along with U.S. DOE support, demonstrate continued confidence in DAC as an investable technology that can create jobs and economic value in the United States and Texas,” Hollub added.

XRG, focused on transformative investments across natural gas, chemicals, and low-carbon solutions, sees the U.S. as a high-priority market.

“Our longstanding partnership with Occidental continues to drive scalable, high-growth and strategically attractive projects that create long-term sustainable value,” said Khaled Salmeen, COO of XRG. “We look forward to building on this partnership as we continue to invest in strategic projects across the energy value chain.”

The DAC Hub will initially feature a single facility, currently in front-end engineering and design, but the full site has capacity to store up to 3 billion tonnes of CO₂ in geologic formations. Occidental and ADNOC have been exploring U.S. and UAE carbon capture opportunities since a 2023 memorandum of understanding.

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