News Summary

Occidental Petroleum has acquired Holocene, a direct air capture (DAC) startup based in Knoxville, Tennessee. This acquisition, executed through Oxy Low Carbon Ventures, marks Occidental’s second purchase of a carbon capture startup, following its 2023 acquisition of Carbon Engineering for $1.1 billion. The financial terms of the Holocene deal were not disclosed. Holocene, which recently signed a $10 million deal with Google to deliver 100,000 metric tons of carbon removal by the early 2030s at $100 per metric ton, is known for its amino acid-based carbon removal technology. This price is significantly lower than the current estimated cost of $600 per metric ton for direct air capture. Occidental plans to integrate Holocene’s technology to enhance its carbon capture research and development, which aligns with its interest in using CO2 for enhanced oil recovery. The acquisition also qualifies for tax credits under the Inflation Reduction Act, contingent on the use of zero-emission power and the application of captured CO2.