Occidental subsidiary secures final permit from EPA to sequester CO2 in Texas

The Occidental Petroleum Headquarters is seen on December 11, 2023 in The Woodlands, Texas. · ESG Dive · Brandon Bell via Getty Images

Zoya Mirza

Wed, Apr 16, 2025, 7:13 AM 2 min read

The Environmental Protection Agency issued final permits to Occidental Petroleum subsidiary Oxy Low Carbon Ventures for three injection wells aiming to store captured carbon dioxide deep underground in Ector County, Texas.
The Class VI permits — which regulate the geologic sequestration of carbon dioxide and require a rigorous, multi-year approval process — were issued last week under the Safe Drinking Water Act Underground Injection Control program. This program outlines criteria on how to safeguard underground drinking water sources from contamination, per an April 7 release.
The trio of final permits come after the EPA issued draft permits for the wells in September 2024. At the time, the agency said the Class VI permits were the first of their kind to be issued in the Lone Star State.

Dive Insight:

The initial draft permits were issued after the EPA evaluated the project site, located about 14 miles from the city of Odessa, in collaboration with the Department of Energy’s National Laboratories. The evaluation was designed to ensure the wells remain “protective of the environment” and would not contaminate underground water or trigger seismic activity.

The agency kept a public comment period on the draft permits open until October and hosted public hearings on the permits as well.

“EPA is committed to approving permits as quickly as possible and ensuring they meet requirements to protect drinking water sources,” EPA Regional Administrator Scott Mason said in the April 7 release. “Oxy Low Carbon Ventures has demonstrated their ability and intention to operate these wells responsibly while creating jobs and supporting the Texas economy.”

The trio of injection wells, located at Occidental’s Stratos direct air capture plant, are expected to store around 722,000 metric tons of carbon dioxide annually at a depth of around 4,400 feet.

The Texas Stratos facility itself is designed to capture up to 500,000 metric tons of carbon dioxide per year once operational by mid-2025. The industrial-scale direct air capture plant received $550 million in funding from BlackRock, the nation’s largest asset management firm, in late 2023. At the time, Occidental said the facility was about 30% complete.