Oxy Low Carbon Ventures signs lease agreement with Manulife Investment Management for a carbon capture and sequestration project in Louisiana
OLCV plans to use the 27,000 acres to expand its carbon sequestration hub business
HOUSTON — April 2022 — Occidental's (NYSE: OXY) Oxy Low Carbon Ventures (OLCV) subsidiary and Manulife Investment Management today announced a lease agreement for 27,000 acres of timberland in Western Louisiana. The agreement provides OLCV’s 1PointFive business unit with rights to develop and operate a carbon sequestration hub, with access to permanently store industrial carbon emissions. Two Class VI injection permits, required by the EPA for geologic sequestration, have already been filed for the site.
The lease agreement is a pivotal step in 1PointFive’s strategic vision to develop carbon capture and sequestration hubs, some of which are expected to be anchored by Direct Air Capture (DAC) facilities.
Manulife Investment Management’s acreage offers excellent storage capacity within proximity to point source industrial emitters, who would otherwise emit the carbon dioxide to the atmosphere. OLCV would also like to recognize New Dawn Energy, who is a land lease partner, and has been cooperative and supportive of the project.
“We are excited to join with Manulife Investment Management and lease the acreage to develop a sequestration hub that will provide access to shared carbon removal and sequestration infrastructure for industrial emitters,” said Dr. Doug Conquest, Vice President, OLCV. “This agreement strengthens our CCUS position and advances commercial scale decarbonization solutions for Oxy and others in line with net-zero goals.”
Eduardo Hernandez, Managing Director and global head of timberland operations at Manulife Investment Management states, “We understand the importance our forests and underlining land play as a natural climate solution in decarbonization. We focus on sustainably managing our forests for climate-positive and nature-positive impact, and we are excited to find additional opportunities to continue this work for clients.”
OLCV’s parent organization, Occidental, stores approximately 20 million metric tons of carbon dioxide annually in its operations. It has developed standards and protocols recognized by the U.S. Environmental Protection Agency (EPA) for monitoring, reporting and verifying (MRV) the amount, safety and permanence of CO2 stored through secure geologic sequestration. The company holds three EPA-approved MRV plans for geologic sequestration. OLCV will apply this expertise to work alongside Hancock on the safe design and operation of the project.
Manulife Investment Management manages approximately 6 million acres of timberland across the United States, Canada, New Zealand, Australia, Brazil, and Chile. It also oversees approximately 400,000 acres of prime farmland in major agricultural regions of the United States and in Canada, Chile, and Australia.
About Oxy Low Carbon Ventures
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental (Oxy), an international energy company with assets primarily in the United States, the Middle East and North Africa. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Oxy’s business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally. Visit Carbon Innovation on oxy.com for more information.
About 1PointFive
1PointFive, a business unit of OLCV, is a Carbon Capture, Utilization and Sequestration (CCUS) platform that is working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions, including Carbon Engineering's Direct Air Capture (DAC) and AIR-TO-FUELS™ technologies alongside geologic sequestration hubs. More at 1PointFive.com.
About Manulife Investment Management
Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 19 geographies. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
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 OLCV’s strategy, 1PointFive’s strategy’s impact on the environment, the agreement’s benefits and related impact on carbon emissions, and 1PointFive’s plans to build, acquire and operate multiple sequestration hubs as part of Oxy’s net-zero strategy. These statements are based on Oxy’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, Oxy 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 Oxy’s control. Factors that may cause actual results to differ materially from forward-looking statements include Oxy’s ability to access necessary technology, to develop and employ existing or new technology on a commercial scale, to acquire requisite pore space, 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 1PointFive’s ability to build, acquire and operate multiple sequestration hubs can be found in Oxy’s public disclosure and its filings with the U.S. Securities and Exchange Commission (SEC), which may be accessed at Oxy’s website at oxy.com or the SEC’s website at sec.gov. Information included herein is not necessarily material to an investor in Oxy’s securities.
Oxy/Oxy Low Carbon Ventures media relations contact
Eric Moses
Phone: +1 (713) 497-2017
Email: eric_moses@oxy.com
Oxy/Oxy Low Carbon Ventures investor relations contact
Jeff Alvarez
Phone: +1 (713) 215-7864
Email: jeff_alvarez@oxy.com
Manulife Investment Management media relations contact
Elizabeth Bartlett
Elizabeth_Bartlett@manulife.com
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