Occidental has announced that its subsidiary 1PointFive, a carbon capture, utilization and sequestration company, announced it has leased, through an affiliate, more than 55,000 acres along the Texas Gulf Coast, to develop a carbon capture and sequestration hub with the capacity to hold approximately 1.2 billion metric tons of carbon dioxide (CO2). 1PointFive leverages the carbon management experience of its parent company Occidental.
The Bluebonnet Hub is located in Chambers, Liberty and Jefferson counties near refineries, chemical plants and manufacturing facilities along the Gulf Coast from Beaumont to Houston. The hub, which is expected to be operational in 2026, will provide for CO2 captured off-site to be securely stored in saline formations that are not associated with oil and gas production.
1PointFive has completed drilling a stratigraphic test well and subsurface assessment to characterize the site’s ability to securely store CO2 and expects to apply for two Class VI permits in 2023. 1PointFive and a subsidiary of Enterprise Products Partners L.P. are furthering the development of a CO2 transportation solution to gather CO2 from regional emitters and deliver to 1PointFive’s hub.
“We are progressing our plans to build sequestration hubs that will provide a solution for carbon intensive industries to help reduce their emissions,” said Jeff Alvarez, President, 1PointFive Sequestration. “This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered. Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”