"This is, so to say, the investment we have to do as a company to move forward." "It's the cost of scaling up," Gebald told Reuters. The firm also sells among the world's most expensive carbon removal credit - costing up to 1,000 euros per tonne - to buyers including Microsoft, Audi and Boston Consulting Group. Mammoth was part-financed by a 600 million Swiss Franc ($627 million) financing round Climeworks announced in April. “This transaction will dramatically enhance our ability to continue developing the technology through to widespread commercialization.Co-CEO Christoph Gebald said once this plant launches, Climeworks intends to build a far bigger facility capturing roughly half a million tonnes of CO2 per year - and then replicate multiple plants of that size, backed by project financing, towards the end of the decade. “This is an important step for our company – which includes approximately 150 employees – as it will enable us to accelerate our mission to lead the world in the large-scale removal of carbon dioxide from the air and help advance our shift to a sustainable, net zero society,” Mr. With revenue still a few years away for Carbon Engineering, Occidental has committed to investing in its technology in Canada to accelerate deployment in the U.S. Thomson.ĭaniel Friedmann, Carbon Engineering’s CEO, said the transaction represents an expansion of the company’s strategic relationship with Occidental. and Occidental, as well as Canadian billionaire Peter J. Other investors include Air Canada, Airbus SE, BHP Group, Chevron Corp. Occidental’s Oxy Low-Carbon Ventures invested in the company. The company won early backing from well-known billionaires including Microsoft co-founder Bill Gates and Canadian energy and sports financier Murray Edwards. Meanwhile, many planned Canadian carbon-capture projects remain in limbo as investors worry that tax credits offered by Ottawa do not address the need for a predictable carbon price in future years.Ĭarbon Engineering was founded by Ottawa-raised physicist David Keith, who is a professor and faculty director at the University of Chicago, and focuses on climate science. Their next major project has won financing under the U.S. incentives offered by the administration of President Joe Biden, including the Inflation Reduction Act, which offers US$369-billion of incentives for clean energy and other green technology. The two companies have been partners since 2019.īoth have touted the attractiveness of U.S. and other foreign players once they show their products and services can make the leap to commerciality. Occidental’s acquisition of Squamish, B.C.-based Carbon Engineering represents the latest in a string of acquisitions of Canadian technology and clean-tech companies by U.S. “The technology partnership also adds new revenue streams in the form of technology licensing and royalties.”ī.C.’s Carbon Engineering is seeing its dream take shape in Texas. “We expect the acquisition of Carbon Engineering to deliver our shareholders value through an improved drive for technology innovation and accelerated DAC cost reductions,” Occidental chief executive officer Vicki Hollub said in a statement. Rather than stripping climate-warming greenhouse gases from a refinery or power-plant smokestacks, the technology involves extracting ambient air with the aid of fans and isolating the CO2 in a chemical process so it can be injected deep into the ground or used as a feedstock for sustainable fuels. federal funding to embark on their next project, a carbon-capture hub near Corpus Christi, Tex., that could eventually be 30 times the size of the first one. Last week, the partners were awarded U.S. Houston-based Occidental subsidiary 1PointFive is employing Carbon Engineering’s technology at a direct-air-capture (DAC) plant it is building in West Texas, designed to remove one million tonnes a year of CO2. for US$1.1-billion, a deal the oil company said will accelerate development of facilities that remove large volumes of carbon dioxide from the atmosphere. OXY-N is buying Canadian clean-tech developer Carbon Engineering Ltd.
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