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By EPN Staff

Federal regulators have issued final permits for Texas’ first carbon sequestration project, which would pull carbon dioxide from the air and inject it deep into the Earth.

Oxy Low Carbon Ventures plans to drill three wells for its direct air capture project about 14 miles from Odessa. The project will ultimately store about 722,000 metric tons of carbon dioxide a year at a depth of about 4,400 feet, the Environmental Protection Agency said in a news release.

“Oxy Low Carbon Ventures has demonstrated their ability and intention to operate these wells responsibly while creating jobs and supporting the Texas economy,” EPA Regional Administrator Scott Mason said in the release.

Why it matters

Carbon sequestration advocates say the emerging technology can take carbon dioxide out of the air and safely trap it underground, keeping the heat-trapping gas from over-accumulating in the atmosphere and contributing to climate change.

According to the EPA, this project's approval Oxy Low Carbon Ventures had to “provide specific analyses of the site to ensure that constructing and operating the proposed wells remains protective of the environment, including preventing contamination to underground sources of drinking water and human-caused seismicity."

That analysis was evaluated by the EPA, as well as by experts at the Department of Energy’s National Laboratories, according to the EPA’s release.

Once in operation, the wells will get “extensive monitoring for well integrity, ground water quality, and CO2 movement,” the EPA said.

The bigger picture

So far the EPA has only approved a handful of injection sites and has more than 160 applications under review. More than 50 of those projects are in Texas, according to the EPA.

The industry’s future may be affected by shifting federal policy. The Inflation Reduction Act, which President Donald Trump is pushing to repeal, included a number of subsidies and tax credits for the technology.

Federal funding for direct air capture study facilities in Texas and Louisiana may be on the chopping block as well.

Additional details

The Texas Railroad Commission, with support from oil and gas companies, has pushed for the authority to permit sequestration projects in Texas to speed up a process that, in federal hands, takes years.

In regulator parlance, this is called “primacy,” and four other states – North Dakota, Wyoming, Louisiana and West Virginia – have this authorization.

Environmental groups have pushed back on Texas’ bid for primacy, claiming fears of rushed reviews of applications. Opponents of sequestration have also claimed leaks could pollute groundwater and that the injection process contributes to earthquakes; proponents argue concerns of these risks are overblown.

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