Occidental Acquires Holocene, Expanding Carbon Capture Portfolio
Occidental has made a strategic move by acquiring Holocene, a direct air capture startup, making it the second such acquisition by the fossil fuel company in two years. The deal was facilitated through Oxy Low Carbon Ventures, a subsidiary of Occidental, although the financial details have not been disclosed. This acquisition was first reported by HeatMap, a reliable source for climate tech news.
Holocene has been actively developing its amino acid-based carbon removal technology, especially after securing a $10 million deal with Google in September. This partnership aims to deliver 100,000 metric tons of carbon removal by the early 2030s. What sets Holocene apart is its competitive pricing at $100 per metric ton, a significant reduction compared to the current industry average of around $600 per metric ton for direct air capture.
Occidental’s interest in carbon capture technologies is closely linked to enhanced oil recovery, a process that involves injecting CO2 underground to boost oil well productivity. In addition to acquiring Holocene, Occidental had previously purchased Carbon Engineering in 2023 for $1.1 billion, further solidifying its position in the carbon capture market.
According to an Occidental spokesperson, the company plans to leverage Holocene’s technology to enhance its research and development efforts in direct air capture. This technology not only aligns with Occidental’s sustainability goals but also qualifies for tax credits under the Inflation Reduction Act, provided that the equipment utilizes zero-emission power and the captured carbon dioxide is utilized for enhanced oil recovery purposes.
