Occidental, ADNOC’s XRG Team Up on $500 Million Texas DAC Hub
(P&GJ) — Occidental and its subsidiary 1PointFive have signed an agreement with XRG, an investment arm of Abu Dhabi’s ADNOC, to explore a potential joint venture for a Direct Air Capture (DAC) hub in South Texas. The venture would support development of a facility designed to remove 500,000 tonnes of CO₂ annually.
Under the agreement, XRG could invest up to $500 million in the project. The plan was formalized in a signing ceremony during President Donald Trump’s state visit to the United Arab Emirates, with Occidental CEO Vicki Hollub and ADNOC Group CEO Sultan Ahmed Al Jaber in attendance.
The DAC facility would be part of Occidental’s proposed South Texas DAC Hub, located on King Ranch in Kleberg County. The site spans approximately 165 square miles and could store up to 3 billion tonnes of CO₂ in geologic formations. The first DAC unit is currently in front-end engineering and design.
“We are proud to advance our decades-long partnership with ADNOC and XRG on our South Texas DAC Hub, which we believe will deliver game-changing technology to support U.S. energy independence and global goals,” said Hollub.
Occidental’s first DAC facility, STRATOS, is under construction in West Texas and expected to begin commercial operations in 2025. The South Texas DAC Hub has also secured up to $650 million in funding from the U.S. Department of Energy.
Occidental and ADNOC previously signed a memorandum of understanding in 2023 to evaluate joint carbon capture, utilization and storage (CCUS) projects in the U.S. and UAE.
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