SK Trading International may purchase up to 200,000 barrels of net-zero oil per year for five years to develop net-zero products, such as lower-carbon aviation fuel- Net-zero oil expected to be created by Occidental using environmental attributes generated from carbon dioxide (CO2) removed from the atmosphere by 1PointFive’s planned Direct Air Capture (DAC) facility
Under the agreement, Occidental’s marketing affiliate may provide SK Trading International’s affiliate with an opportunity to purchase up to 200,000 barrels of net-zero oil per year for five years. To produce the environmental attributes that are utilized for the net-zero oil for this agreement, Occidental plans to inject approximately 100,000 tonnes of captured atmospheric CO2 volumes per year, which is equal to the expected CO2 emissions from the entire crude oil lifecycle, including extraction, transportation, storage, shipping, refining, subsequent use, and combustion. Net-zero oil, which is compatible with existing refinery infrastructure, can help hard-to-abate industries advance their net-zero commitments by providing an affordable, scalable fuel option that does not contribute to additional atmospheric CO2.
1PointFive's first DAC facility, which is expected to be online in late 2024 and also will include pure sequestration, is in the process of being deployed using Carbon Engineering's industrial-scale DAC solution. The facility will extract atmospheric CO2 and permanently store it deep underground in geologic formations delivering permanent and verifiable carbon dioxide removal.
“Net-zero oil is an important component of the energy transition and provides a critical bridge as society moves to a net-zero economy. As Occidental advances our Pathway to Net Zero, we are excited to partner with
“We are pleased to be a part of the world’s first carbon emission reduction initiative that is underpinned by processing net-zero oil on a life-cycle analysis basis. We are also thrilled to team up with Occidental, one of the most respected energy companies in the world,” said SUH Sokwon, President & CEO of
He added, “In the midst of energy transition, one of the biggest changes in our time, the sustainable business ecosystem built around net-zero oil and low carbon products will contribute to Global Net Zero efforts in a new way.”
(1) The term “net-zero oil” indicates crude oil combined together with environmental attributes generated through the removal and sequestration of atmospheric CO2 through an EOR process in an amount equivalent to the CO2 associated with the production, delivery and refining of the crude oil and the use of the resulting product.
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Occidental is an international energy company with assets primarily in
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Established as South Korea’s first oil refining company in 1962,
Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including those relating to Occidental’s deployment and use of DAC technology to create net-zero oil as part of its net-zero strategy, which are based on Occidental’s current expectations, beliefs, plans, estimates, and forecasts. All statements other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws. Words such as “will,” “may,” “expect,” “plan,” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Occidental does not undertake any obligation to update, modify, or withdraw any forward-looking statements as a result of new information, future events, or otherwise.
These statements are not guarantees of future performance as they involve assumptions that may prove to be incorrect and risks and uncertainties, including those that are beyond Occidental’s control. Factors that may cause actual results to differ materially from forward-looking statements include Occidental’s ability to access necessary technology, to develop and employ existing or new technology on a commercial scale, to access capital, to collaborate with third parties and customers, and to receive approvals from regulatory bodies, as well as market conditions, geopolitical events, and scientific developments. Additional factors that may affect Occidental’s ability to deploy DAC technology can be found in Occidental’s public disclosure and its filings with the
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Source: Occidental
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