Occidental's Midstream and Marketing assets include purpose-built, natural-gas-fired cogeneration power plants, located in Texas and Louisiana. These facilities provide steam and electricity to adjacent Occidental facilities and have the capability to sell excess electricity into local markets. Cogeneration, or combined heat and power (CHP), significantly increases electrical power generation efficiency over traditional methods while reducing carbon dioxide (CO2) emissions by more than 50 percent. The greenhouse gas (GHG) emission-reduction benefits from Occidental's natural gas-fired CHP facilities are substantial. Based on typical assumptions, Occidental's CHP facilities at full utilization are estimated to reduce GHG emissions by 5 million metric tons per year compared to the case where equivalent power is supplied from the electrical grid.
OxyChem made Improvements to its CHP systems, saving more than 300,000 MMBtu/year and approximately 18,000 tons of CO2 equivalents reductions per year since implementation.