1PointFive Secures More DOE Funding for Sequestration Hubs

Occidental Petroleum Corp subsidiary 1PointFive has secured $36 million in funding from the U.S. Department of Energy (DOE) for its Bluebonnet and Magnolia Sequestration Hubs.

The funding was awarded under Phase III of the Carbon Storage Assurance Facility Enterprise (CarbonSAFE) Initiative, 1PointFive said in a news release. The awards will support the development of 1PointFive’s carbon dioxide (CO2) sequestration hubs that aim to address industrial sources of emissions.

1PointFive’s Bluebonnet Sequestration Hub, located in Chambers County, Texas, and Magnolia Sequestration Hub, located in Allen Parish, Louisiana, are “well-suited for large-scale geologic CO2 storage and positioned near industrial emissions sources,” the carbon capture, utilization, and sequestration (CCUS) company stated.

By bringing together pore space, UIC Class VI sequestration permits that are progressing and infrastructure, 1PointFive’s hubs will provide a practical way for hard-to-decarbonize industries to advance their climate goals, it said.

“We are using our over 50 years of carbon management expertise and experience developing projects at scale to deliver a proven solution that helps advance industrial decarbonization,” Jeff Alvarez, President of 1PointFive Sequestration, said. “Working in partnership with the Department of Energy supports our ability to rapidly progress our hubs and realize the potential of CCS to further climate goals”.

The funding will help advance 1PointFive’s site characterization activities, permitting and environmental approvals for construction at each hub, according to the release.

Last month, 1PointFive also secured funding from the DOE’s Office of Clean Energy Demonstrations (OCED) for the development of its South Texas Direct Air Capture (DAC) Hub.

“The award is a milestone in furthering commercial-scale DAC in the United States and validation of Occidental and 1PointFive’s ability to use their decades-long expertise in carbon management to accelerate the vital climate technology,” 1PointFive said in an earlier news release.

Funding will be provided in multiple tranches. The initial award of $50 million will advance 1PointFive’s ongoing work at the South Texas DAC Hub. Upcoming activities include engineering, permitting, the procurement of long-lead equipment and continued community engagement to further 1PointFive’s community benefits plan, according to the release.

The total award value for the South Texas DAC Hub is expected to be up to $500 million for the initial DAC facility at the site, and has the potential to increase up to $650 million for the development of an expanded regional carbon network in South Texas, 1PointFive said.

1PointFive’s South Texas DAC Hub, located on the King Ranch in Kleberg County, Texas, will host a DAC facility with an initial removal capacity of 500,000 metric tons of carbon dioxide (CO2) per year with a plan to develop a build-out to over 1 million metric tons per year in the future.

The site has the capacity to expand up to 30 million metric tons of CO2 removal per year through DAC and securely store up to 3 billion metric tons of CO2 in saline formations, according to the release.

1PointFive describes itself as a CCUS company working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions, including Carbon Engineering's DAC and Air To Fuels technology solutions alongside geologic sequestration hubs.

The company said that DAC provides a transparent and durable way to address emissions on a large scale, particularly from hard-to-abate industries.

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