Occidental has bought Holocene, marking the second direct air capture startup the fossil fuel company has bought in two years.
The deal was executed through Oxy Low Carbon Ventures, a subsidiary of the oil and gas company, for an undisclosed amount. HeatMap first reported the news.
Holocene had been racing to advance its amino acid-based carbon removal technology following a $10 million deal it signed in September with Google to deliver 100,000 metric tons of carbon removal by the early 2030s.
At $100 per metric ton, the price was significantly lower than what competitors could offer today. Currently, removing carbon dioxide directly from the atmosphere is estimated to cost around $600 per metric ton.
Occidental’s interest in carbon capture stems from a technique known as enhanced oil recovery, in which CO2 is injected underground to stimulate oil wells. The company bought another direct air capture startup, Carbon Engineering, in 2023 for $1.1 billion.
An Occidental spokesperson told HeatMap that the company will be using Holocene’s technology to further its direct air capture research and development.
Direct air capture qualifies for tax credits under the Inflation Reduction Act, with the final incentive dependent on whether the equipment uses zero-emission power and if the captured carbon dioxide is used for enhanced oil recovery.
