Occidental Petroleum to buy Carbon Engineering for $1.1 bln - Reuters
Occidental Petroleum to buy Carbon Engineering for $1.1 bln | Reuters
Occidental Petroleum to buy Carbon Engineering for $1.1 bln
The logo for Occidental Petroleum is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 30, 2019. REUTERS/Brendan McDermid/File Photo Acquire Licensing Rights
Aug 15 (Reuters) - U.S. oil and gas producer Occidental Petroleum (OXY.N) said on Tuesday it would acquire carbon-capture technology provider Carbon Engineering for a total cash consideration of approximately $1.1 billion.
The direct air capture (DAC) technology uses chemical reactions to remove carbon dioxide from the air, which can then be stored underground or used in products such as concrete or aviation fuel.
DAC is seen as an effective tool to neutralize greenhouse gas emissions when deployed at industrial scale.
Occidental has been working with Carbon Engineering on DAC deployment since 2019.
"The acquisition enables Occidental to catalyze broader development partnerships for DAC deployment in the most capital efficient and valuable way," said Occidental CEO Vicki Hollub.
The deal is expected to close before the end of 2023.
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Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”