© Reuters. An Airbus A319, equipped with radar altimeters that may conflict with telecom 5G technology, can be seen flying 500 feet above the ground as it makes final landing at LaGuardia Airport in New York City, New York, US, January 6. 2022. REUTERS /Bryan

By Sabrina Valle

HOUSTON (Reuters) -Occidental Petroleum Corp said Thursday it agreed to sell emissions-compensating carbon credits to jet-maker Airbus under a deal that furthers the US oil producer’s nascent energy transition business.

The four-year deal sets the stage for Occidental (NYSE:) to proceed with an investment decision for what would become the world’s largest factory designed to suck carbon dioxide (CO2) from the air and bury it underground, thus limiting global warming. .

The value of the deal has not been disclosed. Occidental has scheduled an investor update on its low-carbon operations for Wednesday.

Occidental said construction on its direct air capture (DAC) facility is expected to begin in the second half of this year in the Permian Basin, the top US shale oil field in western Texas and southeastern New Mexico. The location of the factory has not been disclosed.

According to the International Energy Agency, the plant is expected to have a carbon removal capacity 100 times greater than all 19 DAC plants currently operating worldwide.

The potential cost of the project has not been disclosed. Construction was expected to take approximately two years.

Occidental’s direct air capture facility aims to remove 1 million tons of CO2 from the atmosphere per year, equivalent to the emissions of nearly 200,000 cars. A project in Iceland that could remove emissions from 790 cars https://www.reuters.com/business/environment/worlds-largest-plant-capturing-carbon-air-starts-iceland-2021-09-08 was considered the world’s largest a year ago.

Airbus has purchased the capture and permanent storage of 100,000 tons of CO2 from the atmosphere each year for four years, with an option to secure more volume in the future, Occidental said. The deal was signed by Occidental subsidiary 1PointFive.

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This post Occidental signs four-year deal with fighter jet Airbus for carbon credits was original published at “https://www.investing.com/news/commodities-news/occidental-signs-fouryear-deal-with-jetmaker-airbus-for-carbon-credits-2787094”

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