Occidental Petroleum has expanded its investments in direct air capture technology by acquiring Holocene, its second such startup purchase in a two-year period. The acquisition was facilitated through Oxy Low Carbon Ventures, a subsidiary of the oil and gas giant, although the financial specifics of the deal remain undisclosed. The development was first reported by HeatMap.
Holocene has been swiftly progressing its innovative carbon removal technology based on amino acids, having recently finalised a notable $10 million agreement with Google to capture 100,000 metric tons of carbon dioxide (CO₂) by the early 2030s. This pricing, set at $100 per metric ton for carbon removal, is significantly more competitive compared to the current average cost of approximately $600 per metric ton for similar services.
Occidental’s strategy in carbon capture aligns with its interest in enhanced oil recovery, a process whereby CO₂ is injected underground to boost oil extraction. The company made headlines earlier this year with its acquisition of another direct air capture firm, Carbon Engineering, for $1.1 billion.
A spokesperson for Occidental indicated that Holocene’s technology would play a pivotal role in advancing their research and development efforts in direct air capture. Furthermore, technologies in this sector are eligible for tax incentives under the Inflation Reduction Act, which can vary based on the use of renewable energy sources and the application of the captured CO₂ for enhanced oil recovery.
This acquisition underscores Occidental’s commitment to investing in sustainable technologies, as the fossil fuel industry increasingly looks to integrate carbon management strategies into their operational frameworks.
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