Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas) -- A division of Occidental Petroleum Corporation (NYSE:OXY) (Oxy) (Houston, Texas) said it has federal support for the development of two carbon-sequestration facilities along the U.S. Gulf Coast.

1PointFive, a subsidiary of Oxy, announced it had received $36 million from the Department of Energy. This investment will help fund its Bluebonnet and Magnolia carbon-capture and storage (CCS) hubs.

"The awards will support the development of 1PointFive's carbon dioxide (CO2) sequestration hubs that provide a solution to address industrial sources of emissions," 1PointFive explained on Thursday.

Bluebonnet would be in Chambers County, Texas, along the Gulf Coast. Industrial Info finds the facility has a total investment value of $1.3 billion. Its carbon sequestration capacity is 1.3 billion metric tons. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more from a detailed project report and plant profile.

Magnolia is a much smaller facility slated for development in Allen Parish, Louisiana. Industrial Info sees a total investment value of $100 million for this facility. Furthermore, the facility could capture as much as 6 million metric tons of carbon dioxide. Subscribers can learn more from a detailed project report and plant profile.

"Working in partnership with the Department of Energy supports our ability to rapidly progress our hubs and realize the potential of CCS to further climate goals," said Jeff Alvarez, the president of 1PointFive's sequestration division.

Neither project has a definitive completion date. Core geological samples were taken in late 2022.

This is the second such tranche of support from the Department of Energy for sequestration facilities along the Gulf Coast. Just last month, 1PointFive announced it would receive as much as $500 million for its South Texas Direct Air Capture (DAC) Hub in Kingsville, Texas.

1PointFive aims to capture 1 million tons of CO2 annually at the site, either to produce clean fuels or to be injected into the Permian Basin for permanent storage. This would create the potential for an expanded CO2-reduction network in South Texas that additional DOE funds would back. Subscribers can learn more from a detailed project report and plant profile.

DAC can be installed anywhere, as it filters ambient air. Most associate CCS infrastructure with the direct source of pollution.

For example, Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) leased some 10,800 acres near the Houston Ship Channel for potential CCS. Major industrial emitters in the region surround the ship channel. The channel also provides industries such as refining, chemicals and manufacturing with a decarbonization outlet.

Meanwhile, the U.S. Department of Energy said it plans to award more than $8 billion to carbon reduction and clean energy infrastructure projects across Texas and Louisiana.

Data from the International Energy Agency (IEA) show there are about 50 operational carbon-sequestration facilities around the world. The IEA says the industry is truly picking up. However, the amount of carbon that is expected to be captured by 2030 is about 40% of what is needed to decarbonize the global economy.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).