Summary:
Occidental acquires Holocene, a carbon removal startup, marking its second acquisition in the sector in two years.
The deal was made through Oxy Low Carbon Ventures for an undisclosed amount.
Holocene's technology offers carbon removal at $100 per metric ton, significantly lower than competitors.
Occidental aims to use Holocene's technology to further enhance its direct air capture capabilities.
The acquisition aligns with Occidental's strategy in enhanced oil recovery techniques.
Occidental Acquires Holocene
Occidental has made headlines by acquiring Holocene, a startup focused on carbon removal technology. This acquisition marks the second direct air capture startup bought by the fossil fuel giant in just two years. The deal was executed through Oxy Low Carbon Ventures, a subsidiary of Occidental, for an undisclosed amount, as first reported by HeatMap.
Image Credits: Brandon Bell / Getty Images
Holocene had been working diligently to advance its amino acid-based carbon removal technology, especially after signing a $10 million deal with Google in September to deliver 100,000 metric tons of carbon removal by the early 2030s. At a price of $100 per metric ton, Holocene’s technology is notably cheaper compared to the current market rate of approximately $600 per metric ton.
Occidental's interest in carbon capture is linked to enhanced oil recovery, where CO₂ is injected underground to stimulate oil production. The company had previously acquired another direct air capture startup, Carbon Engineering, for $1.1 billion in 2023.
An Occidental spokesperson confirmed that Holocene’s technology will be leveraged to enhance their direct air capture research and development efforts. Notably, direct air capture technologies qualify for tax credits under the Inflation Reduction Act, depending on whether the equipment uses zero-emission power and if the captured CO₂ is utilized for enhanced oil recovery.
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