Occidental Petroleum has acquired Holocene, marking the company’s second purchase of a direct air capture (DAC) startup within two years. The transaction was facilitated through Oxy Low Carbon Ventures, a subsidiary of Occidental, and the financial details of the deal have not been disclosed. The news was initially reported by HeatMap.
Holocene had been advancing its amino acid-based carbon removal technology, building upon a $10 million agreement it secured in September with Google. Under this agreement, Holocene aims to deliver 100,000 metric tons of carbon removal by the early 2030s. The agreed rate of $100 per metric ton was notably less than current market rates, where the cost of extracting carbon dioxide from the atmosphere is estimated to be approximately $600 per metric ton.
Occidental’s investment in carbon capture technology is rooted in a technique known as enhanced oil recovery, which involves injecting CO2 underground to increase oil well productivity. In 2023, Occidental also acquired another DAC startup, Carbon Engineering, for $1.1 billion.
A representative from Occidental confirmed to HeatMap that the company intends to utilize Holocene’s technology to enhance its research and development efforts in direct air capture. Additionally, projects involving direct air capture are eligible for tax credits under the Inflation Reduction Act, with the final benefits contingent upon the equipment’s use of zero-emission power and the application of the captured CO2 for enhanced oil recovery.
