Oxy's $1.3B Texas carbon capture facility on track to​ launch this year

gearing up

Vicki Hollub, president and CEO of Occidental, said the company's Stratos DAC project is on track to begin capturing CO2 later this year. Photo via 1pointfive.com

Houston-based Occidental Petroleum is gearing up to start removing CO2 from the atmosphere at its $1.3 billion direct air capture (DAC) project in the Midland-Odessa area.

Vicki Hollub, president and CEO of Occidental, said during the company’s recent second-quarter earnings call that the Stratos project — being developed by carbon capture and sequestration subsidiary 1PointFive — is on track to begin capturing CO2 later this year.

“We are immensely proud of the achievements to date and the exceptional record of safety performance as we advance towards commercial startup,” Hollub said of Stratos.

Carbon dioxide captured by Stratos will be stored underground or be used for enhanced oil recovery.

Oxy says Stratos is the world’s largest DAC facility. It’s designed to pull 500,000 metric tons of carbon dioxide from the air and either store it underground or use it for enhanced oil recovery. Enhanced oil recovery extracts oil from unproductive reservoirs.

Most of the carbon credits that’ll be generated by Stratos through 2030 have already been sold to organizations such as Airbus, AT&T, All Nippon Airways, Amazon, the Houston Astros, the Houston Texans, JPMorgan, Microsoft, Palo Alto Networks and TD Bank.

The infrastructure business of investment manager BlackRock has pumped $550 million into Stratos through a joint venture with 1PointFive.

As it gears up to kick off operations at Stratos, Occidental is also in talks with XRG, the energy investment arm of the United Arab Emirates-owned Abu Dhabi National Oil Co., to form a joint venture for the development of a DAC facility in South Texas. Occidental has been awarded up to $650 million from the U.S. Department of Energy to build the South Texas DAC hub.

The South Texas project, to be located on the storied King Ranch, will be close to industrial facilities and energy infrastructure along the Gulf Coast. Initially, the roughly 165-square-mile site is expected to capture 500,000 metric tons of carbon dioxide per year, with the potential to store up to 3 billion metric tons of CO2 per year.

“We believe that carbon capture and DAC, in particular, will be instrumental in shaping the future energy landscape,” Hollub said.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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Eight Houston-area energy employers ranked on StartupBlink's new Corporate Startup Activity Index 2025. Photo via Getty Images

Houston energy giants rank high on new corporate startup activity report

startup support

Eight major players in Houston’s energy industry rank among the world’s top 20 energy companies for corporate startup activity.

The inaugural Corporate Startup Activity Index 2025, published by StartupBlink, ranks global corporations by industry. The eight Houston-area employers fall into the index’s energy and environment category.

Researchers from StartupBlink, an innovation research platform, scored more than 370 companies based on three factors: corporate involvement in startup activity, startup success and ecosystem integration.

The eight Houston-area energy employers that landed in the energy and environment category’s top 20 are:

  • No. 3 BP. Score: 13.547. U.S. headquarters in Houston.
  • No. 5 Saudi Aramco. Score: 7.405. Americas headquarters in Houston.
  • No. 7 Eni. Score: 6.255. Headquarters of Eni U.S. Operating Co. in Houston.
  • No. 8 Shell. Score: 6.217. U.S. headquarters in Houston.
  • No. 11 Occidental Petroleum. Score: 5.347. Global headquarters in Houston.
  • No. 15 Engie. Score: 3.352. North American headquarters in Houston.
  • No. 17 Repsol. Score: 2.980. U.S. headquarters for oil and gas operations in The Woodlands.
  • No. 19 Chevron. Score: 2.017. Global headquarters in Houston.

“Building a startup is hard, and navigating corporate innovation can be just as complex. This ranking is a step toward making the connection between startups and corporations more transparent, enabling startups and corporations to collaborate more effectively for mutual success,” said Eli David Rokah, CEO of StartupBlink.

Salesforce topped the global index with a score of 380.090, followed by Intel, Google, Qualcomm, and Comcast.

The Department of Energy has doled out funding to four Houston companies. Photo via Getty Images

4 Houston companies snag DOE funding for carbon advancement

freshly granted

Four Houston companies have captured more than $45 million in federal funding to promote the capture, transportation, use, and storage of tons of carbon dioxide emissions.

The U.S. Department of Energy on May 17 announced funding for these four Houston companies:

  • BP Corporation North America Inc. — $33,411,193. The money will be earmarked for two commercial-scale storage sites along the Texas Gulf Coast. The sites will be able to ultimately store up to 15 million metric tons of CO2 per year.
  • Timberlands Sequestration LLC — $23,779,020. The funding will go toward a biomass carbon removal and storage project for the Alabama River Cellulose pulp and paper mill in Monroe County, Alabama. Atlanta-based Georgia-Pacific LLC owns the mill.
  • Magnolia Sequestration Hub LLC — $21,570,784. The money will help finance the Magnolia Sequestration Hub in Allen Parish, Louisiana, with an estimated 300 million metric tons of total CO2 storage capacity. Magnolia is a subsidiary of Houston-based Occidental Petroleum Corp.
  • Bluebonnet Sequestration Hub LLC — $16,480,117. The funding will be spent on development of the Bluebonnet Sequestration Hub along the Texas Gulf Coast, with the potential for more than 350 million metric tons of CO2 storage capacity. Bluebonnet is a subsidiary of Occidental.

Another Texas company received $3 million in Department of Energy (DOE) funding. Howard Midstream Energy Partners LLC of San Antonio will perform a study for a system capable of moving up to 250 million metric tons of CO2 per year from numerous sources to storage sites on the Gulf Coast — from the Port of Corpus Christi to the Mississippi River.

In all, the Department of Energy announced $251 million in funding for 12 projects in seven states aimed at bolstering the U.S. carbon management capabilities. The money comes from the federal Infrastructure Investment and Jobs Act, which was enacted in 2021.

“Thanks to historic clean energy investments, DOE is building out the infrastructure needed to slash harmful carbon pollution from industry and the power sector, revitalize local economies, and unlock enormous public health benefits,” U.S. Energy Secretary Jennifer Granholm says in a news release.

DOE says carbon dioxide emissions are fueling global warming, which has heightened the threat of droughts, severe fires, rising sea levels, floods, catastrophic storms, and declining biodiversity.

Precedence Research estimates the value of the global market for carbon capture and storage was $4.91 billion in 2022, and it expects the market value to reach $35.7 billion by 2032.

The Ion named three corporate partners ahead of its annual innovation-focused festival. Photo courtesy of the Ion

Houston innovation hub adds Oxy, United, and Woodside as partners

onboarding

Houston’s Ion innovation hub has recruited three heavyweight corporate partners, the hub announced earlier this week.

The new partners are:

  • Houston-based energy company Occidental (known as Oxy).
  • United Airlines Ventures, the sustainability-focused VC arm of Chicago-based United Airlines. United operates a major hub in Houston.
  • Australia-based Woodside Energy, which maintains an office in Houston.

Oxy, United Airlines Ventures, and Woodside will share their expertise in support of Ion’s mission to transform Houston into a global innovation ecosystem, according to an Ion news release. In addition, they will participate in Ion programming and network with Ion affiliates. Executives from all three of the new partners will serve on the Ion Leadership Advisory Roundtable.

“Welcoming our newest partners into Ion’s ecosystem is a further testament to our momentum in the aerospace and energy transition,” says Jan Odegard, who became executive director of the Ion in 2021 after a year of holding the interim position. “Each organization brings their own culture of innovation that aligns with what we are doing at the Ion.”

Michael Leskinen, president of United Airlines Ventures, says the VC firm believes “the Ion will be the epicenter for Houston’s rapidly growing innovation community — a one-stop shop to share ideas, foster startups, and to develop relationships with Houston’s brightest companies and academia.”

Oxy, United Airlines Ventures, and Woodside join Ion corporate partners such as:

  • Aramco Americas
  • Baker Botts
  • BP
  • Chevron
  • ExxonMobil
  • Global Custom Commerce
  • Intel
  • Microsoft
  • Transocean

The Ion announced the new corporate partners in advance of the second annual Ion Activation Festival, set for May 17-19. The Ion and Rice Management Co. host the festival, which shines a spotlight on entrepreneurship and innovation in Houston.

Activities will take place primarily at the Ion’s 16-acre campus. To register for the festival, visit the Ion’s website.

The inaugural festival, held in 2022, drew more than 2,500 attendees.

Oxy's Permian Basin carbon capture project has a news partner and the Astros are thinking about their climate goals. Rendering via 1pointfive.com

Houston energy giant makes moves on emissions with Astros deal, new tech in the Permian Basin

oxy updates

Houston-based energy company Occidental is capturing a ton of attention with its carbon capture initiative.

Occidental’s carbon capture subsidiary, 1PointFive, recently said it’s developing a carbon capture and sequestration hub on a 55,000-acre site along the Gulf Coast in Southeast Texas. The hub will be able to hold about 1.2 billion metric tons of carbon dioxide.

The Bluebonnet Hub, expected to be operating in 2026, will be located in Chambers, Liberty, and Jefferson counties near coastal refineries, chemical plants, and manufacturing facilities. Chambers County is the Houston metro area.

“This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered,” says Jeff Alvarez, president of sequestration at 1PointFive. “Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”

Home run on emissions

Another development at 1PointFive involves the Houston Astros baseball team.

The Astros recently agreed to buy CO2 removal credits from 1PointFive’s carbon capture plant being built in Ector County, whose county seat is Odessa. Under this deal, CO2 captured by the company’s equipment will be sequestered in underground saline reservoirs that aren’t affiliated with oil and gas production.

Over the next three years, the Astros will use the removal credits to help the team achieve a carbon-neutral footprint at Minute Maid Park.

“We remain committed to continuous improvement of our stadium for our fans, and purchasing carbon removal credits is an important investment for us,” Marcel Braithwaite, senior vice president of business operations for the Astros, says in a news release.

Progress in the Permian Basin

Furthermore, 1PointFive is making progress on its carbon capture plant being developed in West Texas’ Permian Basin. The company recently tapped Orlando, Florida-based Siemens Energy to supply two compressors for the plant, which is set to capture more than 500,000 metric tons of CO2 per year.

Vicki Hollub, president and CEO of Occidental, says in a news release that the Permian Basin plant will help meet the Paris Agreement’s Paris climate change goals and reduce global emissions.

The Permian Basin facility, with an estimated price tag of $800 million to $1 billion, is on track to open by late 2024.

The United and Occidental investment arms are planning to form a joint venture to commercialize the technology. Photo courtesy of Cemvita

Houston biotech startup scores $5M to fuel sustainable aviation innovation

seeing green

Houston cleantech startup Cemvita Factory has scored a $5 million investment from United Airlines Ventures, the venture capital fund of the Chicago-based airline.

The equity investment is aimed at propelling commercialization of sustainable aviation fuel through a process involving carbon dioxide (CO2) and synthetic microbes.

Oxy Low Carbon Ventures, a subsidiary of Houston-based Occidental Petroleum that’s a founding investor in Cemvita, and United Airlines Ventures are financing the startup’s work on sustainable jet fuel. United Airlines operates a hub at George Bush Intercontinental/Houston Airport.

If that work pans out, the United and Occidental investment arms plan to form a joint venture to commercialize the technology. The joint venture might include construction of plants for the production of sustainable aviation fuel.

Sustainable aviation fuel, known as SAF, is an alternative to jet fuel that uses non-petroleum feedstock and offers lower greenhouse gas emissions.

Founded by brother-sister team Moji and Tara Karimi in 2017, Cemvita Factory relies on synthetic biology to turn carbon dioxide into chemicals and alternative fuels, including SAF. The startup, founded in 2017, is among the first companies to employ this technology to support heavy-industry decarbonization and find ways to take advantage of microbiology to convert CO2 into fuel.

“The use of SAF is a promising approach that we believe can significantly reduce global emissions from aviation and further decarbonization initiatives to combat climate change,” Richard Jackson, president of operations for U.S. onshore resources and carbon management at Occidental, says in a news release.

Cemvita is the third SAF-related startup to receive an investment from United Airlines Ventures.

The partnership among Cemvita, Occidental, and United is among many initiatives seeking to ramp up production of SAF. For instance, the U.S. Department of Energy is collaborating with the U.S. Department of Transportation, the U.S. Department of Agriculture, and other federal agencies to develop a strategy for scaling SAF technology.

The global SAF market is projected to grow from $219 million in 2021 to more than $15.7 billion by 2030, according to Research and Markets.

The International Air Transport Association says more than 370,000 flights have been fueled by SAF since 2016. Over 26.4 million gallons of SAF were produced last year.

Last month in France, aircraft manufacturer Airbus flew a A380 test jet for about three hours with one of the four engines operating solely on SAF. The three other engines ran on conventional fuel.

In December 2021, United flew a 737 MAX 8 jet from Chicago O’Hare International Airport to Washington Reagan National Airport outside Washington, D.C., with one of the two engines operating only on SAF. It was the first commercial flight with passengers aboard to use SAF in that capacity. The other engine ran on conventional fuel.

United CEO Scott Kirby, who was aboard the historic flight, said the flight was “not only a significant milestone for efforts to decarbonize our industry, but when combined with the surge in industry commitments to produce and purchase alternative fuels, we’re demonstrating the scalable and impactful way companies can join together and play a role in addressing the biggest challenge of our lifetimes.”

For now, airlines are allowed to use up SAF for up to 50 percent of the fuel on commercial flights.

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Autonomous truck company with Houston routes goes public

on a roll

Kodiak Robotics, a provider of AI-powered autonomous vehicle technology, has gone public through a SPAC merger and has rebranded as Kodiak AI. The company operates trucking routes to and from Houston, which has served as a launchpad for the business.

Privately held Kodiak, founded in 2018, merged with a special purpose acquisition company — publicly held Ares Acquisition Corp. II — to form Kodiak AI, whose stock now trades on the Nasdaq market.

In September, Mountain View, California-based Kodiak and New York City-based Ares disclosed a $145 million PIPE (private investment in public equity) investment from institutional investors to support the business combo. Since announcing the SPAC deal, more than $220 million has been raised for the new Kodiak.

“We believe these additional investments underscore our investors’ confidence in the value proposition of Kodiak’s safe and commercially deployed autonomous technology,” Don Burnette, founder and CEO of Kodiak, said in a news release.

“We look forward to leading the advancement of the commercial trucking and public sector industries,” he added, “and delivering on the exciting value creation opportunities ahead to the benefit of customers and shareholders.”

Last December, Kodiak debuted a facility near George Bush Intercontinental/Houston Airport for loading and loading driverless trucks. Transportation and logistics company Ryder operates the “truckport” for Ryder.

The facility serves freight routes to and from Houston, Dallas and Oklahoma City. Kodiak’s trucks currently operate with or without drivers. Kodiak’s inaugural route launched in 2024 between Houston and Dallas.

One of the companies using Kodiak’s technology is Austin-based Atlas Energy Solutions, which owns and operates four driverless trucks equipped with Kodiak’s driver-as-a-service technology. The trucks pick up fracking sand from Atlas’ Dune Express, a 42-mile conveyor system that carries sand from Atlas’ mine to sites near customers’ oil wells in the Permian Basin.

Altogether, Atlas has ordered 100 trucks that will run on Kodiak’s autonomous technology in an effort to automate Atlas’ supply chain.

Rice University scientists invent new algorithm to fight Alzheimer's

A Seismic Breakthrough

A new breakthrough from researchers at Rice University could unlock the genetic components that determine several human diseases such as Parkinson's and Alzheimer's.

Alzheimer's disease affected 57 million people worldwide in 2021, and cases in the United States are expected to double in the next couple of decades. Despite its prevalence and widespread attention of the condition, the full mechanisms are still poorly understood. One hurdle has been identifying which brain cells are linked to the disease.

For years, it was thought that the cells most linked with Alzheimer's pathology via DNA evidence were microglia, infection-fighting cells in the brain. However, this did not match with actual studies of Alzheimer's patients' brains. It's the memory-making cells in the human brain that are implicated in the pathology.

To prove this link, researchers at Rice, alongside Boston University, developed a computational algorithm called “Single-cell Expression Integration System for Mapping Genetically Implicated Cell Types," or SEISMIC. It allows researchers to zero in on specific neurons linked to Alzheimer's, the first of its kind. Qiliang Lai, a Rice doctoral student and the lead author of a paper on the discovery published in Nature Communications, believes that this is an important step in the fight against Alzheimer's.

“As we age, some brain cells naturally slow down, but in dementia — a memory-loss disease — specific brain cells actually die and can’t be replaced,” said Lai. “The fact that it is memory-making brain cells dying and not infection-fighting brain cells raises this confusing puzzle where DNA evidence and brain evidence don’t match up.”

Studying Alzheimer's has been hampered by the limitations of computational analysis. Genome-wide association studies (GWAS) and single-cell RNA sequencing (scRNA-seq) map small differences in the DNA of Alzheimer's patients. The genetic signal in these studies would often over-emphasize the presence of infection fighting cells, essentially making the activity of those cells too "loud" statistically to identify other factors. Combined with greater specificity in brain regional activity, SEISMIC reduces the data chatter to grant a clearer picture of the genetic component of Alzheimer's.

“We built our SEISMIC algorithm to analyze genetic information and match it precisely to specific types of brain cells,” Lai said. “This enables us to create a more detailed picture of which cell types are affected by which genetic programs.”

Though the algorithm is not in and of itself likely to lead to a cure or treatment for Alzheimer's any time soon, the researchers say that SEISMIC is already performing significantly better than existing tools at identifying important disease-relevant cellular signals more clearly.

“We think this work could help reconcile some contradicting patterns in the data pertaining to Alzheimer’s research,” said Vicky Yao, assistant professor of computer science and a member of the Ken Kennedy Institute at Rice. “Beyond that, the method will likely be broadly valuable to help us better understand which cell types are relevant in different complex diseases.”

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This article originally appeared on CultureMap.com.

5 incubators and accelerators fueling the growth of Houston startups

meet the finalists

Houston is home to numerous accelerators and incubators that support founders in pushing their innovative startups and technologies forward.

As part of our 2025 Houston Innovation Awards, the new Incubator/Accelerator of the Year category honors a local incubator or accelerator that is championing and fueling the growth of Houston startups.

Five incubators and accelerators have been named finalists for the 2025 award. They support startups ranging from hard-tech companies to digital health startups.

Read more about these organizations below. Then join us at the Houston Innovation Awards on Nov. 13 at Greentown Labs, when the winner will be unveiled.

Get your tickets now on sale for this exclusive event celebrating Houston Innovation.

Activate

Hard tech incubator Activate supports scientists in "the outset of their entrepreneurial journey." The Houston hub was introduced last year, and joins others in Boston, New York, and Berkley, California—where Activate is headquartered. It named its second Houston cohort this summer.

This year, the incubator grew to include its largest number of concurrent supported fellows, with 88 companies currently being supported nationally. In total, Activate has supported 296 fellows who have created 236 companies. Those companies have raised over $4 billion in follow-on funding, according to Activate. In Houston, it has supported several Innovation Awards finalists, including Solidec, Bairitone Health and Deep Anchor Solutions. It is led locally by Houston Managing Director Jeremy Pitts.

EnergyTech Nexus

Cleantech startup hub EnergyTech Nexus' mission is to accelerate the energy transition by connecting founders, investors and industrial stakeholders and helping to develop transformative companies, known as "thunderlizards."

The hub was founded in 2023 by CEO Jason Ethier, Juliana Garaizar and Nada Ahmed. It has supported startups including Capwell Services, Resollant, Syzygy Plasmonics, Hertha Metals, EarthEn Energy and Solidec—many of which are current or past Innovation Awards finalists. This year Energy Tech Nexus launched its COPILOT Accelerator, powered by Wells Fargo Innovation Incubator (IN²) at the National Renewable Energy Laboratory (NREL). COPILOT partners with Browning the Green Space, a nonprofit that promotes diversity, equity and inclusion (DEI) in the clean energy and climatech sectors. Energy Tech Nexus also launched its Liftoff fundraising program, its Investor Program, and a "strategic ecosystem partnership" with Greentown Labs.

Greentown Labs

Climatetech incubator Greentown Labs offers its community resources and a network to climate and energy innovation startups looking to grow. The collaborative community offers members state-of-the-art prototyping labs, business resources and access to investors and corporate partners. The co-located incubator was first launched in Boston in 2011 before opening in Houston in 2021.

Greentown has seen major changes and activity this year. In February, Greentown announced Georgina Campbell Flatter as its new CEO, along with a new Board of Directors. In July, it announced Lawson Gow as its Head of Houston, a "dedicated role to champion the success of Greentown Houston’s startups and lead Greentown’s next chapter of impact in the region," according to Greentown. It has since announced numerous new partnerships, including those with Energy Tech Nexus, Los Angeles-based software development firm Nominal, to launch the new Industrial Center of Excellence; and Houston-based Shoreless, to launch an AI lab onsite. Greentown Houston has supported 175 startups since its launch in 2021, with 45 joining in the last two years. Those startups include the likes of Hertha Metals, RepAir Carbon, Solidec, Eclipse Energy (formerly GoldH2) and many others.

Healthtech Accelerator (TMCi)

The Healthtech Accelerator, formerly TMCx, focuses on clinical partnerships to improve healthcare delivery and outcomes. Emerging digital health and medical device startups that join the accelerator are connected with a network of TMC hospitals and seasoned advisors that will prepare them for clinical validation, funding and deployment.

The Healthtech Accelerator is part of Texas Medical Center Innovation, which also offers the TMCi Accelerator for Cancer Therapeutics. The Healthtech Accelerator named its 19th, and latest, cohort of 11 companies last month.

Impact Hub Houston

Impact Hub Houston supports early-stage ventures at various stages of development through innovative programs that address pressing societal issues. The nonprofit organization supports social impact startups through mentorship, connections and training opportunities.

There are more than 110 Impact Hubs globally with 24,000-plus members spanning 69 countries, making it one of the world’s largest communities for accelerating entrepreneurial solutions toward the United Nations' Sustainable Development Goals (SDGs).

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The Houston Innovation Awards program is sponsored by Houston City College Northwest, Houston Powder Coaters, FLIGHT by Yuengling, and more to be announced soon. For sponsorship opportunities, please contact sales@innovationmap.com.



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