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ODESSA — West Texans will have their say this week regarding a proposed carbon dioxide injection site when the Environmental Protection Agency holds a series of public meetings in Ector County.
The proposed project — which has been under review for the last two years — would be the largest of its kind in the United States. Occidental Petroleum Corporation, or Oxy, an oil and gas company based in Houston, wants federal approval to capture and store an estimated 722,000 metric tons of carbon dioxide in three injection wells 4,400 feet underground.
“We know that achieving global net zero by 2050 requires technological solutions that can quickly reduce emissions on a large-scale,” William Fitzgerald, a spokesperson for Oxy, said in a statement. Oxy “has been safely and securely storing CO2 underground for more than 50 years.”
Known as Stratos, the facility would be located 20 miles southwest of Odessa. Oxy previously broke ground last year. Public testimony begins Wednesday with an information session at 7 p.m. and ends Oct. 7. The agency can take up to 90 days to issue a final decision, including changes to the proposal.
If approved, Oxy would receive what’s known as Class VI permits, the first of their kind in Texas and the surrounding region that includes New Mexico, Oklahoma, Arkansas, Louisiana and 66 Tribal Nations.
Certain sectors of the energy industry have embraced carbon capture and storage to propel the nation toward its climate goals. For its part, the federal government has put up about $12 billion for eligible projects under the Infrastructure Investment and Jobs Act.
Climate advocates argue that the evidence about the advantages of decarbonization is insufficient and that it falls short of offsetting the greenhouse gases emitted by removing them from the atmosphere.
Companies are pursuing projects anyway. Multiple plans to capture and store carbon dioxide are underway in Texas, including a natural gas power plant in Baytown owned by Calpine Texas CCUS Holdings, which was eligible for up to $270 million in federal dollars. A second San Antonio-based gas company, Howard Energy Partners, was awarded $3 million in federal money to “evaluate the technical and economic feasibility” of transporting 250 million tons of carbon dioxide from the Gulf Coast. Another project in southeast Texas, owned in part by Chevron, spans almost 100,000 acres.
None, however, are close to the amount of carbon dioxide Oxy hopes to capture, inject and store underground.
Oxy is one of the top oil and gas producers in the Permian Basin. With roughly 2.8 million acres between Texas and New Mexico and the biggest direct air capture facility in its portfolio, the company has become a household name in the Texas oil and gas industry. The proposed injection sites will create 120 jobs, Oxy said in a statement.
Oxy said the Stratos project will provide more jobs, workforce training programs, educational opportunities and economic development in the region, but did not provide specifics. Earlier reports said the site will cost about $1 billion to construct.
While it is unclear whether this project qualified for federal incentives, 1PointFive, the company’s subsidiary dedicated to carbon capture, in September received $500 million for a direct air capture plant in South Texas.
Carbon dioxide is a byproduct of oil and gas production. When a fossil fuel company burns coal, crude oil, or natural gas, it emits carbon dioxide. The greenhouse gas traps heat and prevents the atmosphere from cooling.
Oxy intends to capture and store carbon dioxide from the atmosphere and put it underground. Federal regulators determined that the energy firm met every requirement under the Safe Drinking Water Act and accounted for the protection of groundwater. Their review also concluded that the risk of seismicity due to the injections was minimal.
And if necessary, the permit “also puts requirements in place in the event of potential groundwater contamination and/or seismic activity, including shutting down injection operations,” an agency spokesperson said.
Oxy will capture carbon dioxide from the atmosphere through direct air capture, or DAC. The technology separates the gas from other particles in the air and then raises the temperature to incinerate them, leaving only the carbon dioxide. The equipment compresses the remaining gas by raising the pressure until it is the consistency of a brine that is transported and stored permanently in pockets of rock underground.
According to the proposal, Oxy will monitor the pressure and temperature of the proposed sites on the surface of the well and downhole. Temperature and pressure gauges will be measured every second on the surface and every ten seconds in the well, providing a reading every ten minutes. A change in pressure could indicate a problem.
The proposal stated that operators would monitor corrosion in the well four times a year or every three months. Similarly, the groundwater will be monitored every three months unless the regulators ask for additional testing. After three years, groundwater monitoring will occur once annually. The company must alert the EPA 30 days before most tests or if there are any changes. It must also alert them of any malfunctions within 24 hours.
The oil and gas industry introduced carbon capture and sequestration to remediate excess greenhouse gas emissions from its operations since the 1970s. These emissions harm human health and deteriorate the atmosphere, and scientists agree they spur climate change. Industry leaders say it will help the country meet its climate goals and cool global temperatures.
The benefits of carbon capture and storage have been fiercely debated for as long as the technology has existed. Climate advocates and scientists have been skeptical. They say no project has worked fast enough to offset the greenhouse gas emissions from major emitters.
A handful of proposals in Louisiana were subject to backlash from the community, which expressed concerns over contamination.
Commission Shift, a Texas-based watchdog group, said carbon capture and storage threaten groundwater sources. In a statement, the organization said the EPA should refrain from approving the project until the state resolves other lingering issues with saltwater injections, another underground disposal technique contributing to earthquakes in West Texas.
“Outside of the ineffectiveness and inefficiency of (carbon caputure) as a climate mitigation solution, the injection and sequestration of carbon dioxide is dangerous to the land, water, communities, and ecosystems nearby,” Paige Powell, senior policy manager for Commission Shift, said in a statement on Friday.
Ramanan Krishnamoorti, senior vice president of energy at The University of Houston, said neither the public nor the industry should consider carbon capture a permanent solution. He said that residents should pay particular attention to the precautions that Oxy and the EPA will take in case of a leak or contamination.
“We need not build up our hopes that this is the be-all, end-all solution, but the solution that has a time and place,” said Krishnamoorti, an advocate of carbon capture and sequestration technology. “Let's use it as appropriate, but with very clear eyes that we understand what the hazards are, what the risks are, and how do we make sure that we lessen the risk to the maximum extent possible, and yet be able to do it reasonably.”
Disclosure: Calpine and University of Houston have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
