Occidental Petroleum Buys Carbon Engineering to Accelerate Carbon Removal
August 17, 2023: To address climate change, Occidental Petroleum (OXY) has agreed to acquire Carbon Engineering Ltd., a Canadian company that develops direct air capture (DAC) technology. The deal, valued at $1.1 billion, is expected to close in the first half of 2024.
DAC technology removes carbon dioxide (CO2) from the atmosphere. This is a critical step in addressing climate change, as CO2 is the primary greenhouse gas responsible for trapping atmospheric heat.
Carbon Engineering’s DAC technology is one of the most efficient and scalable on the market. The company has already built a pilot plant in British Columbia that can remove 1 million tons of CO2 annually. Occidental plans to use Carbon Engineering’s technology to build a network of DAC plants that can remove up to 100 million tons of CO2 annually.
The acquisition of Carbon Engineering is a significant step forward for Occidental in reducing its emissions. The company has set a goal of achieving net-zero emissions by 2050. DAC technology is a vital part of this strategy, as it will allow Occidental to remove CO2 from the atmosphere and offset its emissions from its oil and gas operations.
The acquisition of Carbon Engineering also shows the growing interest in DAC technology. There is an increasing recognition that DAC is essential to addressing climate change, and companies are increasingly investing in this technology.
The following are some actionable takeaways from this news:
- DAC technology is a promising way to remove CO2 from the atmosphere and mitigate climate change.
- Occidental’s acquisition of Carbon Engineering is a significant step forward in developing and deploying DAC technology.
- More companies are likely to invest in DAC technology as the threat of climate change becomes more urgent.