Chevron pulls out of California direct-air-capture project after DOE partnership

Chevron confirmed that it will exit the Western Regional Direct Air Capture Hub, a DOE-funded initiative in Kern County that was the only local DAC project to receive federal subsidies under the current administration. The decision, communicated by spokeswoman Chanel Jolly after extensive talks with the Department of Energy, was made in July 2025 and no detailed rationale has been released. The hub was designed to capture roughly 300,000 metric tons of carbon dioxide each year from an oilfield power plant and inject it into a deep saline aquifer covering about 7,343 acres, with a total storage goal of 6.8 million tons.

The plan included drilling primary, backup, and pressure-management wells, and had been supported by a $3 million DOE grant awarded in August 2023 for feasibility studies. Regional specialists, such as Katy Larson of the California Energy Research Center, argued the project could transform Kern County’s economy and enable CO₂ use in agriculture, medicine, and manufacturing. Chevron emphasized that its withdrawal should not be taken as a judgment on the project's feasibility or DOE’s carbon-capture program. The termination leaves the future of the hub uncertain pending further actions by the DOE and other partners.