Occidental, Adnoc to consider building direct air capture facility in UAE (NYSE:OXY) - Seeking Alpha

Occidental, Adnoc to consider building direct air capture facility in UAE (NYSE:OXY) | Seeking Alpha

Occidental, Adnoc to consider building direct air capture facility in UAE

Occidental Petroleum Corporation (OXY) By:

Carl Surran, SA News Editor
2 Comments ssuaphoto/iStock via Getty Images

Occidental Petroleum (NYSE: OXY) said Tuesday its 1PointFive subsidiary signed an agreement with Abu Dhabi National Oil Co. to launch a preliminary engineering study for a 1M metric tons/year direct air capture facility in the United Arab Emirates.

The study will assess the feasibility of building the first megaton-scale DAC facility outside the U.S., using the same carbon dioxide extraction technology to be deployed in the Stratos plant 1PointFive is constructing in Texas.

If the UAE project is approved, CO2 extracted at the DAC facility would be connected to Adnoc's CO2 infrastructure in Abu Dhabi for injection and permanent storage into saline reservoirs not used for oil and gas production.

Adnoc is in the testing phase of the world's first fully sequestered CO2 injection well in a carbonate saline aquifer in Abu Dhabi.

Also as part of the agreement, Adnoc may evaluate participation in DAC facilities and CO2 sequestration hubs under development in the U.S. by 1PointFive, and Occidental ( OXY) and Adnoc may evaluate jointly developing one or more UAE-located CO2 sequestration hubs.