Occidental Sees High Carbon Removal Demand, Plant 70% Sold Out

Occidental Petroleum Corp. said it’s seeing strong demand for carbon dioxide removal credits from companies seeking to offset their emissions, providing a steady income stream for its novel carbon-capture project in West Texas.

Credits generated by Stratos, as the project is named, are between 65% and 70% sold out through 2030 even though it’s not yet built, Michael Avery, president of Oxy subsidiary 1PointFive, said on a call with analysts Wednesday. There’s a “strong pipeline” of customers beyond those already signed up, he said.

Stratos will be the world’s largest plant to pull carbon dioxide directly out of the ...