Occidental Secures EPA Permits for Groundbreaking Carbon Capture Project
Houston, TX – Occidental Petroleum (OXY) has received Environmental Protection Agency (EPA) permits for its highly anticipated carbon capture project, marking a significant milestone in the company’s efforts to address climate change through innovative carbon capture and storage (CCS) technologies. The approval paves the way for Occidental to move forward with its plan to capture and sequester millions of tons of CO2 emissions from industrial sources.
A Major Step Toward Carbon Reduction
The EPA permits granted to Occidental will allow the company to expand its carbon capture capabilities and inject captured CO2 into deep underground geological formations for long-term storage. This initiative is part of Occidental’s broader goal to significantly reduce carbon emissions across its operations and contribute to global efforts to mitigate climate change.
“This is a major achievement for Occidental and for the industry as a whole,” said Vicki Hollub, President and CEO of Occidental. “We are committed to playing a leading role in the development and deployment of carbon management technologies that will help reduce global emissions. These permits represent a key step toward making a meaningful impact on decarbonizing critical industries and advancing a more sustainable energy future.”
Occidental has positioned itself as a leader in the growing field of carbon capture and storage. The company’s Enhanced Oil Recovery (EOR) operations already involve injecting CO2 into aging oil reservoirs to boost production, but with this new project, Occidental plans to capture CO2 directly from industrial sources and permanently store it underground, effectively removing it from the atmosphere.
The Scope of the Project
The project will focus on capturing CO2 emissions from various industrial sites, such as power plants and refineries, which are typically among the largest sources of greenhouse gas emissions. Occidental’s project will involve the installation of carbon capture equipment at these sites, followed by transportation of the captured CO2 to storage sites where it will be injected into secure, deep geological formations.
The scale of the project is ambitious, with Occidental aiming to capture up to 1 million metric tons of CO2 annually, a significant step in the company’s long-term goal of achieving net-zero emissions across its operations by 2050. The project is expected to make a considerable contribution to the decarbonization of industrial sectors that are difficult to electrify or transition to low-carbon alternatives.
EPA’s Role in the Approval Process
The approval of these permits by the EPA follows a thorough review process to ensure that the project will be environmentally safe and in compliance with federal regulations. The EPA’s oversight is essential to ensuring that the CO2 injected underground remains contained and does not pose a risk to public health or the environment.
The permits granted to Occidental include those necessary for the safe underground storage of CO2, as well as monitoring, reporting, and verification (MRV) requirements to track the volume of CO2 stored and ensure that it does not escape into the atmosphere. The EPA’s rigorous permitting process reflects the critical importance of ensuring that CCS projects are implemented responsibly and with full transparency.
Support from the Biden Administration
The Biden administration has been a strong advocate for the development of carbon capture technologies as part of its broader climate goals. The administration has set ambitious targets to reduce U.S. greenhouse gas emissions by 50% by 2030 and reach net-zero emissions by 2050. Carbon capture is seen as a critical tool to achieve these goals, particularly in industries where emissions are difficult to eliminate through renewable energy or other technologies.
In March 2021, President Joe Biden announced the Carbon Capture, Utilization, and Storage (CCUS) Initiative, which includes significant funding for projects that aim to capture and store carbon emissions. Occidental’s project aligns with these national priorities and is expected to receive ongoing support from both the federal government and the private sector.
A Game-Changer for the Industry
Occidental’s carbon capture project is poised to be a game-changer in the industry, with the potential to scale up CCS technologies across multiple sectors. The successful implementation of such a project could set a new standard for how businesses can contribute to emissions reductions and climate action.
Carbon capture has long been seen as a key solution to meeting global climate targets. However, its widespread adoption has been hindered by high costs, technical challenges, and regulatory hurdles. Occidental’s project, with the support of the EPA and the federal government, could help overcome these barriers by proving that CCS can be implemented safely and effectively at scale.
For Occidental, this project is not only an opportunity to advance its sustainability goals but also to capitalize on the growing demand for carbon management solutions from industries seeking to reduce their carbon footprint. As more companies adopt net-zero commitments and seek to offset their emissions, Occidental’s expertise in carbon capture could position it as a leader in the emerging carbon market.
Looking Ahead
With the EPA permits now in hand, Occidental is moving forward with the next phase of its carbon capture project, including the construction of the necessary infrastructure and the installation of carbon capture equipment at the targeted industrial sites. The company expects to begin operations in the near future and aims to ramp up its capacity over the coming years.
As the world grapples with the urgency of climate change, projects like Occidental’s carbon capture initiative represent a critical step in the effort to reduce global emissions and transition to a more sustainable energy system. With support from the government and private sector, Occidental’s leadership in carbon capture technology could help pave the way for a cleaner, more sustainable future.
For more updates on Occidental’s carbon capture efforts, stay tuned as the project progresses.
