Occidental Petroleum and Chevron invest in direct air carbon capture and synthetic fuels company Carbon Engineering
Canada-based Carbon Engineering Ltd. (CE) has received equity investment from two global energy companies: Oxy Low Carbon Ventures, LLC (OLCV), a subsidiary of Occidental Petroleum Corporation; and Chevron Technology Ventures (CTV), the venture capital arm of Chevron Corporation. These investments will accelerate the commercialization of CE’s proven Direct Air Capture (DAC) technology that removes CO2 directly from the air and subsequently synthesizes it into clean transportation fuels.
The investments mark the first significant collaboration between a DAC developer and the energy industry, with two global energy leaders investing in DAC as a mechanism to reduce emissions from transportation and enable permanent capture of existing atmospheric CO2 that can be utilized both in oil production and in direct synthesis of fuels.
CE has been developing DAC technology since 2009 and capturing CO2 from the atmosphere at a pilot plant in Squamish, B.C. since 2015. The DAC plants are location-independent and can be co-located with an oilfield operation for enhanced oil recovery (EOR).
Occidental Petroleum is the industry leader in using CO2 to enable low-cost EOR, which can increase oil recovery by 10 to 20 percent in the fields where it is employed, while at the same time permanently sequestering the CO2 in the reservoir.
CE’s complementary AIR TO FUELS process—which combines CO2 from DAC with clean hydrogen from water electrolysis—provides a second pathway for reducing transportation emissions by synthesizing ultra-low carbon intensity liquid fuels. CE’s AIR TO FUELS products are fully compatible with existing cars, trucks, ships and planes, allowing existing vehicles to reduce their carbon emissions without modification.
It is a very important time for the air capture field right now. We’re seeing leading jurisdictions, like California and British Columbia, creating markets for low carbon fuels and technologies like DAC, through effective climate policy. These efficient market-based regulations, and action from energy industry leaders like Occidental and Chevron, show the power of policy in driving innovation and achieving emissions reductions while delivering reliable and affordable energy.—Steve Oldham, CEO of CE
Fort Capital acted as advisors to CE on this transaction.