BlackRock is investing $550 million into Occidental’s carbon capture initiative in West Texas.
The Stratos project is planned to be the world’s largest direct air capture facility to date. Carbon will either be stored underground or used for making eco-friendly versions of things like concrete and aviation fuel.
Carbon capture could be a multi-trillion-dollar market by 2050, reducing carbon on a global scale. This could be crucial for hitting climate targets – experts suggest that we need to capture 10 gigatons of carbon PER YEAR by 2050, in addition to decarbonization efforts.
The Stratos project, set to start in 2025, aims to capture 500,000 tons of CO2 yearly. Plus, it’s a potential job creator, expecting to employ over 1,000 people. BlackRock’s investment could be viewed as a vote of confidence in DAC technology.