Oxy and Carbon Engineering partner to Combine Direct Air Capture and Enhanced Oil Recovery storage
5th June 2019
Oxy Low Carbon Ventures, a subsidiary of Occidental, and a Global CCS Institute member; and Carbon Engineering Ltd., a Canadian direct air capture company, have announced they are jointly proceeding with the engineering and design of the world’s largest Direct Air Capture (DAC) and sequestration facility. The facility conceived will be designed to capture and permanently store 500,000 tonnes of CO2 per year. It will be located at an Occidental oil field in the Permian Basin, and the captured CO2 will be used for enhanced oil recovery (EOR).
This is an exciting development for the carbon capture and storage industry, as the project for the first time pairs DAC and geological sequestration on a commercial scale. The DAC plant will be magnitudes larger than any currently operating application of DAC, providing enough CO2 on an ongoing basis to support EOR operations at an oil field. Additionally, the facility avoids the need for an extensive transport pipeline and the challenges of acquiring rights of way and permitting.
Assuming the project proceeds as planned, construction will begin in 2021 and the facility will be operational by 2023. It will be designed to qualify for both the US federal 45Q tax credits, and California’s Low Carbon Fuel Standard credits.
Future plans include the expansion of the concept to include multiple DAC plants, each capturing one million tonnes of CO2 per year.