Capture Your Company’s Economic Success in Odessa, TX; Beginning with Carbon

Odessa, Texas, brings a long history in energy to its expansions into renewable energy and carbon capture or storage. A case in point is the construction of STRATOS, the world’s largest Direct Air Capture (DAC) facility, by 1PointFive, an Oxy subsidiary, just outside the city. The facility will eventually be able to collect 500,000 tonnes of carbon dioxide per year, with commercial operation by mid-2025.

Odessa’s advantageous geographical location, business-friendly environment and skilled workforce with energy expertise made it a logical choice for STRATOS.  The potential for future investments by companies ready to participate in the rapidly advancing fields of carbon capture is unlimited. Whether through similar innovative projects or via sourcing carbon captured at STRATOS for manufacturing operations, companies will benefit immensely from relocating to Odessa.

"We are excited about what this opportunity can mean for Odessa and the surrounding area," said Tom Manskey, director of the Odessa Chamber of Commerce Economic Development Department. "I am proud that our wonderful city was selected for this new venture and look forward to seeing the positive economic benefits." 

Carbon monetization supports other industries

DAC facilities remove carbon dioxide from the atmosphere by drawing air into the processing facility, then separating it through a series of chemical reactions. The carbon dioxide can be stored permanently in underground sequestration or utilized in select industries. Proximity to the world’s largest DAC facility offers significant advantages for adjacent industries. 

Manufacturers utilizing carbon in the production process can benefit from easy access to a steady, local source for carbon. For example, carbon products can be essential ingredients in the manufacture of concrete. The Odessa concrete company, GCC, has received a grant to expand production capacity by over one million metric tons annually to meet demand. GCC previously focused on oil and gas clients but will contribute to interstate expansion and residential growth in Odessa through a $750 million project. 

Other industrial applications for carbon include plastics and foam created with carbon dioxide and enhanced oil recovery. Carbon dioxide is also a key ingredient or component of various consumer goods, like vodka, diamonds, activewear, soda, and carbonated beverages. Suppliers and manufacturers of equipment and components for all of these industries stand to benefit from carbon capture endeavors as well.  
In addition to supporting industries by providing a steady supply of captured carbon, corporations can purchase carbon offsets to achieve a net zero in carbon emissions. For industries with difficult-to-regulate emissions, credit purchases make it possible to reduce or eliminate emissions while accessing tax incentives provided by the federal government. 

Geographic and infrastructure advantages elevate Odessa

When GCC announced its expansion, the company highlighted the considerable freight savings it would realize by increasing capacity in Odessa versus the Chihuahua, Mexico location. Other manufacturers can experience the same supply and distribution savings by choosing Odessa. The city is centrally located along key transportation corridors in West Texas. Interstate 20 runs through the city, and a second east-west route, Interstate 10, is a short drive away. Numerous state and federal highways create additional access points to north-south arteries. For larger shipments, the Union Pacific rail line provides an affordable alternative for domestic imports and exports.

Odessa makes growth easy

For new or existing businesses, support is available for expanding in Odessa or relocating to the city. The business-friendly environment includes various grants and tax abatements designed to attract industries and streamlined permitting to help enterprises transition from planning to operation efficiently. 

"We are focused on investment in this community," Manskey said. “We want to help companies in any way we can, whether helping locate building sites, funding infrastructure and other tax incentives. Odessa is open for business!”

To learn more about the potential awaiting the carbon capture industry in Odessa, contact Odessa Development Corporation today.