Energy giant Occidental (Oxy) and its Direct Air Capture (DAC)-focused subsidiary 1PointFive announced that they have been awarded permits by the U.S. Environmental Protection Agency (EPA) to sequester CO2 captured from its Texas-based DAC megaproject STRATOS in deep underground wells.

According to Oxy, the permits are the first to be issued to sequester CO2 from a DAC project.

1PointFive is currently developing a series of carbon removal and sequestration projects in the U.S., including STRATOS in Ector County, Texas, which it expects to be the largest DAC facility in the world to date, designed to capture 500,000 tonnes of CO2 per year when fully operational. Oxy said that STRATOS is on track to be commercially operational in 2025. DAC technology extracts CO2 directly from the atmosphere for use as a raw material or permanently removed when combined with storage.

Oxy and 1PointFive have partnered with BlackRock on the development of STRATOS, with the asset management giant announcing a $550 million investment in the project in 2023.

Oxy President and Chief Executive Officer Vicki Hollub said:

“This is a significant milestone for the company as we are continuing to develop vital infrastructure that will help the United States achieve energy security. The permits are a catalyst to unlock value from carbon dioxide and advance Direct Air Capture technology as a solution to help organizations address their emissions or produce vital resources and fuels.”

The EPA noted that the new permits are the first to be issued by the agency for Class VI injection wells in Texas under the Safe Drinking Water Act Underground Injection Control program, which establishes requirements to protect underground sources of drinking water from contamination. Class VI injection wells store CO2 deep underground that has been captured from an emissions source or the atmosphere.

EPA Regional Administrator Scott Mason said:

“EPA is committed to approving permits as quickly as possible and ensuring they meet requirements to protect drinking water sources. Oxy Low Carbon Ventures has demonstrated their ability and intention to operate these wells responsibly while creating jobs and supporting the Texas economy.”