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Occidental has bought Holocene, marking the second direct air capture startup the fossil fuel company has bought in two years.<\/p>\n
The deal was executed through Oxy Low Carbon Ventures, a subsidiary of the oil and gas company, for an undisclosed amount. HeatMap first reported<\/a> the news.<\/p>\n Holocene had been racing to advance its amino acid-based carbon removal technology following\u00a0a $10 million deal it signed in September with Google<\/a> to deliver 100,000 metric tons of carbon removal by the early 2030s. <\/p>\n 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<\/a>.<\/p>\n Occidental\u2019s interest in carbon capture stems from a technique known as enhanced oil recovery, in which CO2<\/sub> is injected underground to stimulate oil wells. The company bought another direct air capture startup<\/a>, Carbon Engineering, in 2023 for $1.1 billion.<\/p>\n An Occidental spokesperson told HeatMap that the company will be using Holocene\u2019s technology to further it\u2019s direct air capture research and development.<\/p>\n 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.\u00a0<\/p>\n<\/div>\n