Occidental Petroleum has inked a deal with the Abu Dhabi National Oil Co. that could provide $500 million for a carbon dioxide removal megaproject being pursed by the U.S. driller.
The agreement to evaluate a potential joint venture for the South Texas Direct Air Capture Hub was signed by Occidental Chief Executive Vicki Hollub and ADNOC CEO Sultan al-Jaber, who is also the technology minister and climate envoy of the United Arab Emirates. It was announced Friday during President Donald Trump’s visit to the UAE.
The deal represents a vote of confidence — and a potential insurance policy — for the hub’s development amid increased scrutiny of climate-related spending from Trump’s Department of Energy, along with growing economic challenges for the broader direct air capture industry.
The South Texas hub seeks to remove 1 metric million tons of heat-trapping carbon dioxide from the atmosphere annually with matching funds awarded during the Biden administration — federal backing that is now in question. Occidental’s deal with ADNOC would help fund a hub that’s half the size of the current proposal.
