Occidental wants to create net-zero oil by combining crude oil together with the sequestration of carbon dioxide (CO2) captured at a large-scale direct air capture (DAC) plant in the US.
Once captured the world’s largest DAC facility, developed by 1PointFive and located in the Permian Basin, the CO2 will be sequestered in Occidental’s enhanced oil recovery (EOR) reservoirs in the same region.
Occidental plans to inject approximately 100,000 tonnes of captured atmospheric CO2 volumes per year, the equivalent to the expected CO2 emissions from the entire crude oil lifecycle, including extraction, transportation, storage, shipping, refining, subsequent use, and combustion.
1PointFive’s first DAC facility, which is expected to be online in late 2024 and also will include pure sequestration, is in the process of being deployed using Carbon Engineering’s industrial-scale DAC solution.
Richard Jackson, President of US Onshore Resources and Carbon Management Operations at Occidental, said, “Net-zero oil is an important component of the energy transition and provides a critical bridge as society moves to a net-zero economy.”
“As Occidental advances our pathway to net zero, we are excited to partner with SK Trading International and leverage our licensed direct air capture technology and EOR experience to create a new solution for the transportation sector.”
Already, interest in the net-zero oil has been placed, with SK Trading International on Tuesday (22nd March) inking an agreement with Occidental to potentially purchase up to 200,000 barrels of the oil per year over a five-year period.
SK Trading International, along with SK Innovation, has declared its 2050 Net Zero Journey and is actively developing its action plans to become net zero and even to accomplish this earlier than planned.
SUH Sokwon, President and CEO of SK Trading International and President of SK Energy Refinery Business, said, “We are pleased to be a part of the world’s first carbon emission reduction initiative that is underpinned by processing net-zero oil on a life-cycle analysis basis. We are also thrilled to team up with Occidental, one of the most respected energy companies in the world.”
“In the midst of energy transition, one of the biggest changes in our time, the sustainable business ecosystem built around net-zero oil and low carbon products will contribute to global net zero efforts in a new way.”
In focus: Direct air capture technology
Last year, gasworld’s Broadcast Journalist Thomas Dee spoke exclusively with Carbon Engineering to find out more about the company’s direct air capture (DAC) technology. Find out more about the environemtally friendly technology, and just one of the upcoming facilities that will feature, it in the below video.