BlackRock to Invest $550 Million in Direct Air Capture Project

BlackRock, the global investment management corporation, has announced plans to invest $550 million in a direct air capture (DAC) project being developed in Texas by 1PointFive, a subsidiary of Occidental Petroleum. The project, known as the Stratos plant, aims to capture up to 500,000 metric tons of carbon dioxide per year, with the potential to increase this capacity to 1 million mt/year.

Scheduled to become operational in mid-2025, the Permian Basin facility represents a significant step in the development of DAC technology. BlackRock’s investment will be made through a fund managed by its infrastructure business, and the companies will form a joint venture to drive the project forward.

Occidental President and Chief Executive, Vicki Hollub, expressed that this partnership demonstrates the growing interest in DAC as an investable technology. She further emphasized the significance and potential of the Stratos plant for combating carbon emissions.

According to Larry Fink, Chairman and Chief Executive of BlackRock, this project presents an incredible investment opportunity for the company’s clients. As one of the world’s leading investment firms, BlackRock’s involvement adds substantial credibility and expertise to the endeavor.

The announcement follows recent commitments made by other leading organizations such as Canada’s TD Bank Group, Amazon, Airbus, and All Nippon Airways, who have all entered into agreements to support the Texas DAC project. These partnerships highlight the increasing recognition of DAC as a viable solution for reducing carbon emissions.

Occidental’s acquisition of Carbon Engineering, a Canadian DAC company, for $1.1 billion underscores the company’s commitment to scaling up DAC technology. The Texas facility is just one of many large-scale DAC plants that Occidental plans to build worldwide by 2035.

In summary, BlackRock’s significant investment in the Stratos plant reflects the growing confidence in DAC technology and its role in addressing climate change. By partnering with Occidental, BlackRock is leveraging its expertise to support the deployment of industrial-scale DAC solutions.

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