Offshore staff
HOUSTON — An Occidental wholly owned subsidiary has entered into a definitive purchase agreement to acquire all the outstanding equity of Carbon Engineering Ltd. for total cash consideration of approximately $1.1 billion, to be made in three approximately equivalent annual payments, with the first at closing.
This transaction is expected to close before year-end 2023, subject to Canadian court reviews, Canadian and US regulatory approvals, and other customary closing conditions.
Occidental has been working with Carbon Engineering on direct air capture (DAC) deployment since 2019. The company says acquiring Carbon Engineering aligns with its integrated net-zero strategy and provides the company, through its 1PointFive subsidiary, the opportunity to "rapidly advance DAC technology breakthroughs and accelerate deployment of DAC as a large-scale, cost-effective, global carbon removal solution."
Upon closing, Carbon Engineering would become a wholly owned subsidiary of Oxy Low Carbon Ventures. Carbon Engineering’s personnel will continue to drive ongoing DAC technology development efforts and work closely with the Occidental and 1PointFive teams to bring DAC solutions to market, Occidental explained.
Occidental President and CEO Vicki Hollub said, “We expect the acquisition of Carbon Engineering to deliver our shareholders value through an improved drive for technology innovation and accelerated DAC cost reductions. The technology partnership also adds new revenue streams in the form of technology licensing and royalties. Importantly, the acquisition enables Occidental to catalyze broader development partnerships for DAC deployment in the most capital efficient and valuable way."
1PointFive is building Stratos, the world’s largest DAC plant, which is expected to be commercially operational in mid-2025, in Ector County, Texas.
08.16.2023
