Occidental says STRATOS DAC technology performed as expected, but facility issue may delay operations
Occidental Petroleum said construction of the second phase of its STRATOS direct air capture (DAC) plant in West Texas is complete, but the company disclosed a newly identified facility issue that could affect the startup schedule.
The update came during Occidental’s first-quarter 2026 earnings call, where incoming CEO Richard Jackson said the DAC technology itself performed as expected during commissioning activities.
“The construction of Phase 2 is now complete,” Jackson said. “This is the second 250,000 tons per year of capacity. It includes the final two air contactor trains and updated pellet reactors based on the new design.”
STRATOS, being developed by Occidental subsidiary 1PointFive with Carbon Engineering’s potassium hydroxide-based DAC technology, is designed to capture up to 500,000 metric tons of CO2 per year when fully operational. The project has been widely described as the world’s largest planned DAC facility.
Jackson said Occidental also completed commissioning of the Phase 1 unit operations, including the air contactors and central processing facility. “During commissioning, the technology and process unit operations performed as expected,” he said.
However, Jackson said the company later identified “an issue related to non-process components of the facility, unrelated to the technology.” He did not specify the nature of the problem.
“We are currently evaluating the repair timeline and assessing the impact on the operations schedule, and will provide an update next quarter,” Jackson said.
The company said it does not currently expect the issue to affect its 2026 capital spending guidance.
The disclosure suggests STRATOS could face a schedule adjustment as it moves from construction into startup and commissioning. Occidental had previously reported that the first 250,000-ton phase — including central processing infrastructure and initial air contactor trains — had reached wet commissioning and system testing.
The plant is located in Ector County, Texas, and is intended to supply carbon removal credits and CO2 for geologic storage and other applications. Occidental has positioned DAC as a long-term business line tied to carbon management, enhanced oil recovery, and low-carbon fuels.
