Occidental and 1PointFive, King Ranch Reach Lease Agreement to Support up to 30 Direct Air Capture Plants on Leased Acreage

Lease agreement provides 106,000-acres in Texas with pore space estimated to accommodate up to 3 billion metric tons of carbon sequestration

HOUSTON, Oct. 31, 2022 (GLOBE NEWSWIRE) -- Occidental (NYSE: OXY) and its subsidiary 1PointFive and King Ranch, a privately held agricultural production and resource management company, today announced a lease agreement to support large-scale Direct Air Capture (DAC) projects for dedicated carbon dioxide (CO₂) sequestration on 106,000 acres in Kleberg County, Texas.

The agreement provides access to land for the potential to remove up to 30 million metric tons of CO₂ per year through DAC and pore space estimated to store up to 3 billion metric tons of CO₂ in geologic reservoirs.

The agreement will advance 1PointFive’s development plans for commercial-scale DAC plants as a decarbonization solution to accelerate a net-zero economy. In addition to DAC emissions capture, the King Ranch acreage is also located near industrial emitters in the Gulf Coast region, including Corpus Christi, where emissions can be captured, transported, and sequestered in the pore space. Each DAC plant in the site is expected to be capable of removing up to 1 million metric tons of CO₂ per year, yielding a total capacity of up to 30 million metric tons per year when all facilities are operational.

Largest DAC Deployment Project in the World

"We are excited to work with King Ranch on what will be the largest DAC deployment project in the world, as we continue our plans to provide affordable and practical industrial-scale decarbonization solutions," said Vicki Hollub, President and CEO, Occidental. "We believe large-scale DAC, which is an innovative engineered CO₂ removal solution, will play an important role in helping organizations and nations reduce their net CO₂ emissions and provide the scale necessary to make a difference in addressing climate change globally."

"King Ranch has been focused on conservation for more than a century. While these methods to capture carbon are relatively new, they are consistent with our vision and values. We’re proud to partner with Occidental while continuing a focus on stewardship of our natural resources," said Robert Hodgen, CEO of King Ranch, Inc.

DAC Construction and Technology Partners

Occidental’s first DAC plant in the Texas Permian Basin is currently under construction and builds on Occidental’s 50 years of carbon management experience. 1PointFive is working with Carbon Engineering to commercialize their technology and enable the global deployment of large-scale DAC projects. Worley is handling engineering, procurement, and construction (EPC) services for the first DAC plant.

About Occidental

Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world. Visit oxy.com for more information.

About 1PointFive

1PointFive is a Carbon Capture, Utilization and Sequestration (CCUS) platform that is working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions, including Carbon Engineering's Direct Air Capture (DAC) and AIR TO FUELS™ technologies alongside geologic sequestration hubs. More at 1PointFive.com.

AIR TO FUELS™ is a registered trademark of Carbon Engineering Ltd.

About King Ranch

King Ranch, Inc. was founded in 1853 and operates as a privately held agribusiness, real estate, energy, and resource management company with diversified operations in Texas, Florida and California. The firm has been focused on habitat conservation and sustainability for more than 100 years and owns the historic 825,000-acre King Ranch in South Texas, as well as the famous King Ranch Saddle Shop (krsaddleshop.com). Visit king-ranch.com for more information.