STRATOS designed to capture up to 500,000 tonnes of CO2 per year, making it the world’s largest DAC facility. (Source: Shutterstock)
This is a developing story. Check back for updates.
BlackRock Inc., the world’s largest asset manager and led by one of the oil and gas industry’s most controversial critics, is investing $550 million in a direct air capture (DAC) project with Occidental Petroleum.
Dubbed STRATOS, the joint venture (JV) development in Ector County, Texas, is designed to capture up to 500,000 tonnes of CO2 per year, making it the world’s largest DAC facility, according to a joint statement from the companies Nov. 7. Construction is about 30% complete; commercial operations are expected to begin mid-2025.
“BlackRock is proud to partner with global energy leader Occidental to help build the world’s largest direct air carbon capture facility in Texas,” said Larry Fink, chairman and CEO at BlackRock, in the release with Occidental CEO Vicki Hollub.
“Occidental’s technical expertise brings unprecedented scale to this cutting-edge decarbonization technology,” Fink said.
BlackRock reported more than $9 trillion in assets under management as of September 2023. The firm is making the STRATOS investment through a fund managed by its diversified infrastructure business to form the JV with Occidental’s subsidiary 1PointFive, which will own STRATOS.
“This joint venture demonstrates that direct air capture is becoming an investable technology, and BlackRock’s commitment in STRATOS underscores its importance and potential for the world,” Hollub said in the release.
“We believe that BlackRock’s expertise across global markets and industries makes them the ideal partner to help further industrial-scale direct air capture.”
Kirkland & Ellis advised BlackRock on the investment. White & Case advised Occidental.
Recommended Reading
Formentera Partners’ Pearsall Wildcat IP’s 1,499 bbl in Frio County
2025-04-15 - Formentera Partners’ 1.5-mile Hurrikain Cat I-STX #S731H’s lateral was made in Pearsall at about 10,000 ft, updip of where past Pearsall tests results were mostly gassy.
EOG, SM, Magnolia Ramp Up Austin Chalk Development for NatGas Growth
2025-04-17 - As Tier 1 Eagle Ford inventory declines, EOG, SM and Magnolia are accelerating development in the overlying Austin Chalk to sustain South Texas output.
Six New Dean Wildcats Come With 95% Oil in Northern Midland Basin
2025-02-21 - SM Energy reported geologic variability in deposition in the new play in southern Dawson County, Texas, but “it's really competitive.”
Vital, SM: Woodford-Barnett Wildcats Flush with Barrels in Southern Midland
2025-02-25 - An initial SM Energy test made 250,000 boe in its first eight months online. Vital Energy is reporting more than 150,000 gross boe per 10,000 ft of lateral in its first-six-month output.
Occidental to Up Drilling in Permian Secondary Benches in ‘25
2025-02-20 - Occidental Petroleum is exploring upside in the Permian’s secondary benches, including deeper Delaware Wolfcamp zones and the Barnett Shale in the Midland Basin.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.