Occidental's Oxy Low Carbon Ventures (OLCV) subsidiary and Weyerhaeuser announced an agreement for the evaluation and potential development of a carbon capture and sequestration project in Livingston Parish, Louisiana.
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The lease agreement provides OLCV with exclusive rights to develop and operate a carbon sequestration hub on more than 30,000 acres of subsurface pore space controlled by Weyerhaeuser.
OLCV will use the land to permanently sequester industrial carbon dioxide (CO2) in underground geologic formations not associated with oil and gas production, while Weyerhaeuser continues to manage the aboveground acreage as a working forest.
The lease agreement, with the potential to expand acreage, is a pivotal step in OLCV subsidiary 1PointFive’s strategic vision to develop a series of carbon capture and sequestration hubs within the U.S.:
1PointFive plans to build, acquire and operate multiple sequestration hubs on the Gulf Coast and across the U.S., some of which are expected to be anchored by Direct Air Capture (DAC) facilities, to offer storage capacity to point-source emitters, such as manufacturing sites and power plants, with a capacity to sequester up to hundreds of millions of metric tons of anthropogenic CO2.
1PointFive aims to play a transformational role in combatting climate change through industrial decarbonization of the hard-to-abate industrial sector in the U.S.
“We’re excited to work with Weyerhaeuser to grow this side of our business and help reduce carbon emissions. 1PointFive and its planned sequestration hubs are expected to be an expanding side of our business that will work with industrial emitters to capture, transport and permanently store CO2,†said Richard Jackson, chairman of 1PointFive.
“1PointFive is a comprehensive carbon capture, utilization and storage (CCUS) platform that is working to deliver solutions to reduce global emissions backed by Oxy's expertise and experience in carbon management for more than 50 years.†■