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Carbon removal startup Holocene bought by oil and gas giant Occidental

Occidental, the oil and gas giant, has acquired carbon removal startup Holocene through its Oxy Low Carbon Ventures. This follows another acquisition of a direct air capture startup, highlighting Occidental's investment in carbon capture technology to enhance its oil recovery processes and benefit from tax incentives under the Inflation Reduction Act.

Key points

  • Occidental purchased Holocene via Oxy Low Carbon Ventures for an undisclosed amount.
  • Holocene specializes in amino acid-based carbon removal technology.
  • Holocene has a $10 million agreement with Google to remove 100,000 metric tons of CO2 by the early 2030s.
  • The cost of Holocene's carbon removal is $100 per metric ton, far less than the typical $600.
  • Occidental aims to leverage Holocene's technology for research and direct air capture development.
  • Enhanced oil recovery involves injecting CO2 underground to boost oil extraction.
  • Direct air capture technologies qualify for tax benefits under the Inflation Reduction Act.

Why it matters

  • This acquisition reflects a growing trend in the energy sector, focusing on sustainable and carbon-neutral technologies as part of wider climate goals.
  • The climate policy landscape, including the Inflation Reduction Act, is driving investments in carbon capture.
  • The rise of direct air capture aligns with global efforts to combat climate change and reduce greenhouse gas emissions.

Occidental's acquisition of Holocene underscores the increasing integration of carbon capture technologies in traditional fossil fuel operations, reflecting a significant pivot towards sustainability amid regulatory and market pressures.