Photo by: Carbon Engineering / Carbon Engineering
Occidental Petroleum will buy the Canadian direct air capture company Carbon Engineering for $1.1 billion, the Houston-based oil giant announced Tuesday.
It's the latest venture for Oxy and other oil companies trying to reposition themselves as carbon management companies in light of the energy transition, even as they continue to produce oil. Last week, an Oxy project south of Corpus Christi was among one of two Gulf Coast carbon capture projects selected by the Biden administration to receive up to $1.2 billion in federal funding.
Carbon Engineering's technology, which the company unveiled in partnership with Oxy in April, uses potassium hydroxide to draw carbon dioxide into its processing units. The West Texas facility is scheduled to launch in 2025 with the initial ability to capture 500,000 tons of carbon dioxide per year.
Oxy said it plans to pay for the Carbon Engineering acquisition in three annual installments beginning at closing later this year.
 | Claire Hao
Energy Reporter
claire.hao@houstonchronicle.com |
|
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