• 1PointFive secures up to $500M from the U.S. Department of Energy for the South Texas Direct Air Capture (DAC) Hub.
• The initial $50M will drive engineering, permitting, and community engagement efforts for the hub.
• The DAC facility aims to remove 500,000 metric tons of CO2 annually, with potential expansion to 30 million tons.

1PointFive, a subsidiary of Occidental, has secured up to $500 million in funding from the U.S. Department of Energy (DOE) to develop its South Texas Direct Air Capture (DAC) Hub. The funding, awarded through the Office of Clean Energy Demonstrations, marks a critical step in scaling DAC technology for significant carbon removal in the United States.

The project will receive an initial $50 million to kickstart essential activities such as engineering, permitting, and procurement. This initial phase also emphasizes continued community engagement, focusing on local hiring and workforce development in South Texas.

Vicki Hollub, President and CEO of Occidental, stated, “Large-scale Direct Air Capture is one of the most important technologies that will help organizations and society achieve their net zero goals. This award demonstrates the U.S. Department of Energy’s commitment to realizing the full potential of DAC and its confidence in the South Texas DAC Hub to deliver CO2 removal at a climate-relevant scale.”

Located on the King Ranch in Kleberg County, Texas, the DAC Hub will initially remove 500,000 metric tons of CO2 annually, with plans to expand capacity to over 1 million metric tons per year. In the long term, the site could remove up to 30 million metric tons of CO2 annually and securely store up to 3 billion metric tons in saline formations.

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The development also includes a Community Benefits Plan, designed to support the local workforce and promote educational opportunities in the South Texas region.

This funding further solidifies 1PointFive’s leadership in carbon management and showcases the government’s confidence in DAC as a scalable solution to combat climate change.