BlackRock Invests $550 Million in Occidental Carbon Capture (1)

BlackRock Inc. will invest $550 million of client money into Occidental Petroleum Corp.’s Stratos project, which will be the world’s largest plant capturing carbon dioxide directly from the air.

BlackRock’s diversified infrastructure business signed an agreement through one of its funds to form a joint venture with Occidental’s 1PointFive subsidiary that will own Stratos, the companies said Tuesday. Occidental shares climbed as much as 1.7% in after-hours trading.

A scale model of Occidental’s Stratos direct air capture facility, now under construction in Texas.

Photographer: Jordan Vonderhaar/Bloomberg

The BlackRock investment represents about 40% of the project’s total $1.3 billion cost, making it one of the largest investments in direct air capture to date. It also means Occidental’s ...