Occidental Petroleum has made an investment of $1.1 billion to acquire Carbon Engineering Ltd, a leading company, in air capture (DAC) technology. The objective behind this move is to set up 100 DAC plants that will play a role in addressing climate change by extracting CO2 from the atmosphere for purposes. With the support of grants, Occidental is actively advancing innovation, towards achieving emissions neutrality.
Occidental Petroleum, a prominent U.S. player in the oil and gas sector, has recently entered into a significant agreement. They will be investing a substantial sum of $1.1 billion to acquire Carbon Engineering Ltd, a technology supplier specializing in cutting-edge solutions.
Occidental Petroleum’s strategic move aims to facilitate the establishment of an array of carbon-capture sites. These initiatives hold the promise of not only addressing the pressing issue of climate change but also generating substantial profits.
The overarching objective of Occidental Petroleum is to construct approximately 100 plants that utilize the innovative direct air capture (DAC) technology. This groundbreaking method involves extracting carbon dioxide (CO2) from the atmosphere. The captured CO2 can then be stored underground or harnessed for various applications such as the production of concrete and aviation fuel.
Despite its immense potential, DAC technology is still in its early commercial stages, necessitating significant investments in the range of billions of dollars. These investments are crucial to demonstrate the economic viability of the technology and its potential to yield substantial returns.
Carbon dioxide, a well-recognized greenhouse gas, has drawn the attention of President Joe Biden’s administration. The administration sees DAC technology as a potential instrument to achieve the ambitious emissions neutrality target by 2050. For this vision to materialize, the technology must demonstrate its viability on a commercial scale. It’s important to note that while conventional carbon capture focuses on emissions from industrial facilities, DAC technology takes a proactive approach by actively extracting CO2 directly from the atmosphere.
Recently, the U.S. Department of Energy announced substantial federal grants exceeding $1 billion for designated sites in Texas and Louisiana. A portion of this funding is earmarked for Occidental’s ambitious plans to establish 30 DAC plants in Kleberg County, Texas.
Notably, these initiatives will receive initial support from a $3.5 billion allocation authorized by Congress through the bipartisan infrastructure bill, specifically designated for regional DAC hubs. Occidental Petroleum’s collaboration with Carbon Engineering in the realm of DAC deployment dates back to 2019, underscoring the depth of their partnership and shared objectives.
Vicki Hollub, the CEO of Occidental Petroleum, aptly summarizes the significance of this acquisition. She highlights how this strategic move empowers Occidental to forge expansive development partnerships that drive the efficient and valuable deployment of DAC technology. This acquisition represents a pivotal step forward in the company’s journey toward sustainable and impactful innovation.
