BlackRock’s Diversified Infrastructure Business has formed a joint venture with oil and gas company Occidental to build STRATOS, which will be the world’s largest direct air capture plant.
The $550 million investment is through one of the $9 trillion asset management firm’s funds. The plant will be erected in Ector County, Texas. Occidental’s subsidiary 1PointFive will own STRATOS, which is designed to capture up to 500,000 tons of carbon per year. The plant is expected to be commercially operational in 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, BlackRock in a statement. “Occidental’s technical expertise brings unprecedented scale to this cutting-edge decarbonization technology. STRATOS represents an incredible investment opportunity for BlackRock’s clients to invest in this unique energy infrastructure project and underscores the critical role of American energy companies in climate technology innovation.”
The technology captures and removes large volumes of CO2 directly from the atmosphere, which can be safely and securely stored deep underground in geologic formations, officials said. STRATOS was formed to provide cost-effective solutions that companies in hard-to-decarbonize industries can use in conjunction with their own emissions reduction programs. To date, 1PointFive has signed CO₂ removal credit purchase agreements with customers, including Amazon, Airbus, All Nippon Airways (ANA), TD Bank Group, the Houston Astros, and the Houston Texans.