Occidental bought the Holocene and marked the second direct air capture startup that he purchased two years later.
The agreement was carried out at a private amount through Oxy Low Carbon Ventures, a subsidiary of the oil and gas company. HeatMap was the first to report the news.
The Holocene was racing to advance amino acid-based carbon removal technology, following a $10 million deal that it signed with Google in September to provide 100,000 tonnes of carbon removal by the early 2030s.
At $100 per metric tonne, the price was significantly lower than what competitors could offer today. It is currently estimated that removing carbon dioxide directly from the atmosphere will cost around $600 per metric tonne.
Occidental’s interest in carbon capture comes from a technique known as fortified oil recovery, in which CO2 is injected underground to stimulate the oil wells. The company purchased another direct air capture startup, Carbon Engineering, in 2023 for $1.1 billion.
An Occidental spokesman told Heatmap that the company will use Holupene’s technology to promote direct air capture research and development.
Direct Air Capture is subject to tax credits under the Inflation Reduction Act. The ultimate incentive will depend on whether the equipment is using zero emissions and whether the captured carbon dioxide will be used to enhance oil capture.
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