Oxy secures first DAC Class VI Permit

Development Activity

• ExxonMobil permits ‘Nighthawk’ - a stratigraphic well in St. Landry’s Parish Louisiana for future Class VI application

• Aethon Energy submits Class VI permit in Louisiana following successful testing of ‘Flowering Peach’. This is a 6 well development servicing Haynesville’ natural gas processing and biomass-to-x projects

Occidental And 1PointFive Secure EPA Class VI Permits For Stratos DAC In Texas

• Oxy on Wednesday announced they have received their Class VI permit for ‘Brown Pelican’ in Ector County, Texas - first permit ever for sequestering CO2 from Direct Air Capture

• The project will be developed using 3 injection wells: BRP CC1, BRP CC2, and BRP CC3 - following successful stratigraphic testing from Shoe Bar 1AZ and Shoe Bar 1 wells.

• The CO2 will be injected into the Lower San Andres Formation at a proposed rate of 385,000 metric tons per annum (mtpa) for approximately two years followed by CO2 injection at a rate of 770,000 mmtpa for an additional 10 years. A total of 8.5 Million Metric Tons (MMT) is estimated to be stored during the injection period.

• Oxy and BlackRock Joint Venture, Stratos DAC facility, is expected to be the world’s largest direct air capture project, able to collect up to 500,000 tonnes of CO2 annually - with buyers including Microsoft, Trafigura, BCG, and TD Bank among others

US carbon capture projects slated for cuts on DOE list

• U.S. Secretary of Energy Chris Wright and the DOE are reviewing previously announced funding opportunities for carbon capture and storage and direct air capture - including the now permitted Oxy’s Brown Pelican and Project Cypress in Louisiana

• Hard to abate sectors like natural gas power generation, cement and steel have leveraged government funding to support FEED studies, drill stratigraphic wells, and advance project development in strong public-private partnerships - creating uncertainty in future post-combustion carbon capture industry

• These funds have also been used to bring low Technology Readiness Level (TRL) to commercial levels where developers can be comfortable using their technology

News Bites

• South Korea Launches Ambitious Plan To Boost CCU

• Taiwan’s electronics manufacturing giant, Foxconn, has officially entered the carbon capture industry, forming a partnership with the UK-based company Pace