White & Case Advises Occidental on Joint Venture with BlackRock to Develop STRATOS, the World's Largest Direct Air Capture Plant
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Global law firm White & Case LLP has advised Occidental in the development of STRATOS, the world's largest Direct Air Capture (DAC) facility, in Ector County, Texas. Through a fund managed by its Diversified Infrastructure business, BlackRock has signed a definitive agreement to form a joint venture with Occidental through its subsidiary 1PointFive that will own STRATOS. BlackRock will invest $550 million on behalf of clients in the development of STRATOS.
STRATOS is designed to capture up to 500,000 tonnes of CO2 per year. Construction activities for STRATOS are approximately 30 percent complete and the facility is expected to be commercially operational in mid-2025. The project is expected to employ more than 1,000 people during the construction phase, and up to 75 once operational.
DAC is a technology that captures and removes large volumes of CO2 directly from the atmosphere, which can be safely and securely stored deep underground in geologic formations. STRATOS is expected to provide cost-effective solutions that companies in hard-to-decarbonize industries can use in conjunction with their own emissions reduction programs. To date, 1PointFive has signed CO2 removal credit purchase agreements with customers, including Amazon, Airbus, All Nippon Airways (ANA), TD Bank Group, the Houston Astros, and the Houston Texans.
This transaction reinforces White & Case's prominent position as a market leader in offering legal counsel for energy transition transactions, specifically encompassing direct air capture and various carbon capture, utilization and storage technologies.
The White & Case team was led by partners Jay Cuclis, Morgan Hollins and David Strickland and included associates Jack Moxon, Anil Tanyildiz, Clint Farha, Richard McNulty and Alex Bischoff (all in Houston).
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