Biden's Investing $1.2 Billion to Combat Carbon Dioxide Pollution -- and Occidental Petroleum Stock Could Skyrocket Because of It
The Biden administration announced plans to invest up to $1.2 billion to kick-start the country's carbon capture and storage industry. As part of the President's Investing in America agenda, the funds will help advance the development of two commercial-scale direct air capture (DAC) facilities in the Gulf Coast region. These facilities would pull carbon dioxide directly from the air. It would then be sequestered underground or utilized.
Occidental Petroleum (NYSE: OXY) subsidiary 1PointFive will receive one of those grants. The company will use the money to help fund the development of its South Texas DAC hub. It's one of several carbon capture-related solutions the company is developing. It sees a massive opportunity in the sector, which could be a major upside catalyst for its stock.
Occidental's 1PointFive subsidiary is a carbon capture utilization and sequestration (CCUS) platform focused on helping limit the rise in global temperatures to 1.5 degrees Celsius by 2050 to prevent the worst impacts of climate change. It's taking a multipronged approach by investing in various solutions to reduce carbon emissions and utilize the greenhouse gas.
Source Fool.com