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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.

Comments

Engineer-Poet
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.

Yes, we know it CAN be done.  That's not the question.  The question is, can anyone AFFORD to do it at the required scale?  (Unanswered, because the answer is certainly not just no, but HELL NO!)

Arnold

Once the domain of popular mechanics predictions which we know mostly didn't come to be now in the proliferate post truth era every advertising agency worth a crumpet can sell the possible.
It's up to us to ask the questions such as 'who benefits from these imaginative creations?'
Examples like this there are too many to count. The $$ involved in this magical suspension of reality shows the clearest reasoning.
Just when we think we have seen every conceivable stretch of credulity we understand the imagination has no limits..

GdB

I bet $100 with 100:1 odds this will not be cost competitive without subsidy, for at least 30 years. Caveat: Continued growth and business as usual, earth destructive path, will give it a chance to succeed if oil prices increase long term, but the environmental cost will be horrific.

anican13

ok for you guys who think this cannot be scaled or something useful to our environment just take a second and look outside. our world is getting warmer and its only a matter of time before we are going to not be able to grow food or even feed the entire world population which is horrendous. and if you say know one can afford it then what are we supposed to do just give up and let the world get warmer and pour more co2 into the atmosphere and then in 30 years its going to be even more expensive to remove carbon from the atmosphere. At least someone is doing something about this problem we have. cost might be high but it will be even higher in 20 or 30 years when we actually need technology like this because the world is going to crap. natural disasters cost the government millions if not billions of dollars each year because of us neglecting the environment. if the government would fund companies like this maybe we wouldn't have so many natural disasters. natural disasters have been around since the beginning of time but it is proven that over the past 120 years they are getting worse. I applaud companies like this and hope they can continue to get funded and make our air cleaner. I know I might sound like a tree huger but people like you all are the reason why people don't believe in companies like this. there is more money spent on fixing things caused by global warming than money spent investing on ways to fix it. keep up the good work CE I'm rooting for you guys to show our government why we need technology like this for our future.

Engineer-Poet
ok for you guys who think this cannot be scaled or something useful to our environment just take a second and look outside.

Whether or not it would be great if we COULD do it is totally irrelevant to the question of whether or not we CAN do it.  The demand for "renewables" as a solution to climate change is like the Ghost Dance.

our world is getting warmer and its only a matter of time before we are going to not be able to grow food or even feed the entire world population which is horrendous.

We already have a workable solution to this.  The problem is that the "Greens" have declared that solution anathema and insisted we must have "renewables".  We were told that the whole world would be renewable by the 1990's, but here we are with 2020 coming up in a hurry and FF is still most of human energy consumption.  Long story short, the Greens were and are wrong... perhaps deliberately so, which explains why they've gotten so much money to push their agenda (they got it from FF interests).

if you say know one can afford it then what are we supposed to do just give up and let the world get warmer and pour more co2 into the atmosphere

No, we finish the job we started in the 60's and 70's and go nuclear.  "Green" Germany's grid emits about 560 gCO2/kWh.  "Green" Denmark has improved a lot lately, but is still something like 200 g.  "Evil Nuclear France" was emitting 58 grams and Sweden something like 20 grams.

At least someone is doing something about this problem we have.

No, they're really not.  They're a fake fire brigade, making a lot of noise about fighting fires but not actually doing anything to put the fires out.

How do you know they're fake?  Because they're financed by Occidental Petroleum and Chevron, two interests with enormous amounts of money to lose if the scheme actually worked.

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