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Released April 11, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S Environmental Protection Agency (EPA) recently approved Occidental Petroleum Corporation's (NYSE:OXY) (Houston, Texas) final air permits to sequester carbon dioxide (CO2) from its STRATOS direct air capture (DAC) facility in Ector County, Texas, which is on track to start commercial operations in 2025. But the EPA approval comes as the Trump administration could modify, or void, the agency's 2009 finding that CO2 poses a danger to public health.
The DAC method removes CO2 directly from the atmosphere, while carbon, capture and storage (CCS) and carbon, capture, utilization and storage (CCUS) aim to prevent CO2 from entering into the atmosphere via transportation methods such as pipelines and rail, before utilizing it and/or storing it underground.
Oxy and its subsidiary 1PointFive are building the STRATOS DAC facility, which is designed to capture up to 500,000 tons of CO2 per year once fully operational. "STRATOS is progressing on schedule to be commercially operational this year," Occidental Chief Executive Officer Vicki Hollub said in the company's fourth-quarter earnings call in February. "We completed construction of trains 1 and 2 in December [2024] and have been thoroughly impressed by the work of our teams and our construction partner, Worley (North Sydney, Australia)."
She added construction on the central processing facilities is expected to be completed in the second quarter, with commissioning on trains 1 and 2 in parallel. "We expect startup operations to continue in the third quarter, with a ramp up of the initial capacity through yearend."
Despite the EPA approving air permits for the project's three proposed Class VI sequestration wells, Industrial Info deems the sequestration project as having a low probability (0-69%) of kicking off in July. Class VI injection wells store CO2 deep underground.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for the projects related to the STRATOS DAC facility and here for the related plant profile.
The EPA's approval of the STRATOS project sequestration marks the first Class VI air permit issued to sequester CO2 from a DAC project. The permits were issued under the Safe Drinking Water Act's Underground Injection Control program, which establishes requirements to protect underground sources of drinking water from contamination.
But the approval comes at an uncertain time for carbon capture's place in the U.S. energy landscape, now that President Donald Trump is in office. Last month, Lee Zeldin, administrator of the EPA, outlined 31 separate actions aimed at reconsidering energy and environmental rules enacted under former presidents Barack Obama and Joe Biden, including the 2009 "endangerment finding," which found that CO2 emissions posed a threat to human health. For more information, see March 14, 2025, article - EPA Will Reconsider 31 Energy and Environmental Rules from Trump's Predecessors and March 11, 2025, article - Will Trump Administration Gut EPA's 2009 Endangerment Finding on CO2?.
Last month, the Senate Environment and Public Works Committee held a hearing, "Improving the Federal Environmental Review and Permitting Processes," and the Carbon Capture Coalition submitted a statement for the record, advocating for a timely permitting process for carbon capture, removal, transport and utilization projects--including the Class VI program.
The coalition is a nonpartisan collaboration of more than 100 companies, labor unions, and conservation and environmental policy organizations.
In addition, it said a supportive policy framework--including the federal Section 45Q tax credit and funding through the Infrastructure and Jobs Act--would support nationwide adoption of carbon management technologies.
Industrial Info also is tracking Matheson Tri-Gas Incorporated's (Irving, Texas) construction of the Penwell Air Separation Plant, also in Ector County, which will supply gaseous oxygen to support the STRATOS DAC facility. Subscribers can click here to read more information on the project, which is expected to wrap up this year.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a list of detailed reports for projects mentioned in this article, and click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The DAC method removes CO2 directly from the atmosphere, while carbon, capture and storage (CCS) and carbon, capture, utilization and storage (CCUS) aim to prevent CO2 from entering into the atmosphere via transportation methods such as pipelines and rail, before utilizing it and/or storing it underground.
Oxy and its subsidiary 1PointFive are building the STRATOS DAC facility, which is designed to capture up to 500,000 tons of CO2 per year once fully operational. "STRATOS is progressing on schedule to be commercially operational this year," Occidental Chief Executive Officer Vicki Hollub said in the company's fourth-quarter earnings call in February. "We completed construction of trains 1 and 2 in December [2024] and have been thoroughly impressed by the work of our teams and our construction partner, Worley (North Sydney, Australia)."
She added construction on the central processing facilities is expected to be completed in the second quarter, with commissioning on trains 1 and 2 in parallel. "We expect startup operations to continue in the third quarter, with a ramp up of the initial capacity through yearend."
Despite the EPA approving air permits for the project's three proposed Class VI sequestration wells, Industrial Info deems the sequestration project as having a low probability (0-69%) of kicking off in July. Class VI injection wells store CO2 deep underground.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project and Plant databases can click here for the projects related to the STRATOS DAC facility and here for the related plant profile.
The EPA's approval of the STRATOS project sequestration marks the first Class VI air permit issued to sequester CO2 from a DAC project. The permits were issued under the Safe Drinking Water Act's Underground Injection Control program, which establishes requirements to protect underground sources of drinking water from contamination.
But the approval comes at an uncertain time for carbon capture's place in the U.S. energy landscape, now that President Donald Trump is in office. Last month, Lee Zeldin, administrator of the EPA, outlined 31 separate actions aimed at reconsidering energy and environmental rules enacted under former presidents Barack Obama and Joe Biden, including the 2009 "endangerment finding," which found that CO2 emissions posed a threat to human health. For more information, see March 14, 2025, article - EPA Will Reconsider 31 Energy and Environmental Rules from Trump's Predecessors and March 11, 2025, article - Will Trump Administration Gut EPA's 2009 Endangerment Finding on CO2?.
Last month, the Senate Environment and Public Works Committee held a hearing, "Improving the Federal Environmental Review and Permitting Processes," and the Carbon Capture Coalition submitted a statement for the record, advocating for a timely permitting process for carbon capture, removal, transport and utilization projects--including the Class VI program.
The coalition is a nonpartisan collaboration of more than 100 companies, labor unions, and conservation and environmental policy organizations.
In addition, it said a supportive policy framework--including the federal Section 45Q tax credit and funding through the Infrastructure and Jobs Act--would support nationwide adoption of carbon management technologies.
Industrial Info also is tracking Matheson Tri-Gas Incorporated's (Irving, Texas) construction of the Penwell Air Separation Plant, also in Ector County, which will supply gaseous oxygen to support the STRATOS DAC facility. Subscribers can click here to read more information on the project, which is expected to wrap up this year.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a list of detailed reports for projects mentioned in this article, and click here for a list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
