05:35 PM EDT, 09/12/2024 (MT Newswires) -- An Occidental (OXY) subsidiary working to develop a commercial-scale platform to remove greenhouse gases directly from the atmosphere has received $50 million in funding from a federal program.

The US Department of Energy, through its Office of Clean Energy Demonstrations, provided the initial $50 million grant to 1PointFive, an Occidential subsidiary that's building the South Texas Direct Air Capture Hub near the Gulf of Mexico in Kingsville, Texas.

The project is expected to eventually receive up to $500 million in funding from the program over time and may even be eligible for as much as $650 million to develop an expanded regional carbon-capture network, Occidental said Thursday.

Once operational, the South Texas DAC Hub should be capable of removing up to 500,000 metric tons of carbon dioxide for storage in saline formations annually, with future capacity growing to over 1 million metric tons per year.

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