Oil giant Occidental Petroleum (NYSE: OXY) has secured a significant boost for its ambitious South Texas Direct Air Capture (DAC) Hub project. The U.S. Department of Energy (DOE) has announced a grant of $1.2 billion to two projects, including OXY’s DAC project to remove carbon dioxide from the air.
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Occidental’s proposed project is likely to be located in Kleberg County, Texas, and is the world’s first DAC plant designed to remove up to 1 million metric tons of carbon dioxide every year. This innovative initiative aligns with ongoing global efforts to combat climate change.
The proposed project by OXY’s 1PointFive subsidiary and by Climeworks are the first winners of DoE’s $3.5 billion fund dedicated to the development of direct air capture technology.
Analysts are cautiously optimistic about OXY stock, with a Moderate Buy consensus rating based on seven Buys, five Holds, and one Sell.
