Oxy acquires CCS technology entity for $1.1 bln

USA

HOUSTON, August 17, 2023 – Occidental Petroleum has agreed to wholly acquire Canadian CCS technology supplier Carbon Engineering for approximately USD 1.1 billion, the US oil and gas producer announced on Tuesday.

The transaction will be carried out in three approximately equivalent annual payments, with the first expected upon closing.

The acquisition is expected to close by the end of 2023 following Canadian and US regulatory approvals and customary closing conditions.

Occidental Petroleum plans to build 100 plants using direct air capture (DAC) technology to strip carbon dioxide from the atmosphere and store it or use it to make products such as concrete and aviation fuel.

The company’s subsidiary 1PointFive is currently building Stratos, the world’s largest DAC facility, which is expected to come on line in mid-2025.

Occidental Petroleum and Carbon Engineering are also working on adapting Stratos’ FEED study to build a DAC plant in Kleberg County, Texas.

“Carbon Engineering and Occidental have been working increasingly close together for the past five years to address the carbon dioxide problem, making Occidental a trusted and committed partner for this next chapter in Carbon Engineering’s journey,” said Daniel Friedmann, CEO of Carbon Engineering.

“At the core of this deeper relationship is the commitment to invest in the development of our technology here in Canada, and the global reach to accelerate implementation of DAC-based climate solutions in the USA and around the world.”