Startup developing technology for sucking carbon from air just sold to a Warren Buffett-backed oil giant for $1.1 billion
Startup developing technology for sucking carbon from air just sold to a Warren Buffett-backed oil giant for $1.1 billion Fortune
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Occidental Petroleum Acquires Carbon Engineering for $1.1 Billion
Occidental Petroleum Corp., backed by Warren Buffett, has agreed to purchase Canadian startup Carbon Engineering Ltd. for $1.1 billion. This acquisition will further solidify Occidental’s position as a leader in carbon dioxide removal from the atmosphere, aligning with the Sustainable Development Goals (SDGs).
Deal Details
- Occidental will pay for the acquisition in cash.
- The deal is expected to close before the end of the year, pending regulatory approvals.
The Houston-based oil producer has been collaborating with Carbon Engineering for the past four years. Occidental has been utilizing Carbon Engineering’s technology for its Stratos project, located in West Texas. The Stratos project aims to become the world’s largest direct air capture plant by 2025.
CEO Vicki Hollub stated, “We expect the acquisition of Carbon Engineering to deliver value to our shareholders through enhanced technology innovation and accelerated cost reductions in direct air capture (DAC).” This aligns with SDG 9: Industry, Innovation, and Infrastructure.
Buffett’s Support
Warren Buffett has praised Vicki Hollub’s leadership of Occidental and recently increased Berkshire Hathaway’s stake in the company to 25%, making it the largest shareholder. This demonstrates Buffett’s confidence in Occidental’s commitment to sustainable development and the SDGs.
Carbon Capture and Sequestration (CCS) Momentum
Carbon capture and sequestration, a favored climate solution of major oil companies, is gaining significant momentum. Following record profits and favorable tax incentives through the Inflation Reduction Act, Big Oil companies are actively pursuing CCS initiatives. Occidental’s acquisition of Carbon Engineering is the second major CCS deal in recent weeks, with Exxon Mobil acquiring CO2 pipeline operator Denbury Inc. for $4.9 billion. These initiatives contribute to SDG 13: Climate Action.
Future Plans
In addition to the Stratos project, Occidental plans to utilize Carbon Engineering’s technology in its King Ranch DAC hub in south Texas. The Department of Energy has recently provided financial backing for this project. These endeavors align with SDG 7: Affordable and Clean Energy.
About Carbon Engineering
Carbon Engineering was founded in Calgary by Harvard University Professor David Keith, a pioneer in CO2 removal from the air. The company’s technology allows for the large-scale extraction of CO2, which can be either stored underground or used for various industrial purposes. Early investors in Carbon Engineering included Bill Gates, Chevron Corp., BHP Group Ltd., Occidental, and several family offices. This demonstrates the private sector’s commitment to advancing sustainable development and achieving the SDGs.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.2: Increase substantially the share of renewable energy in the global energy mix | No specific indicators mentioned in the article |
| SDG 9: Industry, Innovation, and Infrastructure | 9.4: Upgrade infrastructure and retrofit industries to make them sustainable | No specific indicators mentioned in the article |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning | No specific indicators mentioned in the article |
| SDG 17: Partnerships for the Goals | 17.16: Enhance the global partnership for sustainable development | No specific indicators mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
The article discusses Occidental Petroleum’s acquisition of Carbon Engineering, a Canadian startup focused on removing carbon dioxide from the atmosphere. This aligns with SDG 7 (Affordable and Clean Energy) as it involves the development and use of technology to reduce carbon emissions. It also relates to SDG 9 (Industry, Innovation, and Infrastructure) as it involves the retrofitting of industries and the development of sustainable infrastructure. Additionally, it connects to SDG 13 (Climate Action) as it aims to address climate change through carbon capture and sequestration. Lastly, it relates to SDG 17 (Partnerships for the Goals) as it involves collaborations between Occidental Petroleum, Carbon Engineering, and other stakeholders.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 7.2: Increase substantially the share of renewable energy in the global energy mix
- Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
- Target 13.2: Integrate climate change measures into national policies, strategies, and planning
- Target 17.16: Enhance the global partnership for sustainable development
Based on the article’s content, the specific targets identified are:
– Target 7.2: Occidental Petroleum’s partnership with Carbon Engineering involves the use of technology for carbon capture and removal, contributing to the increase in renewable energy sources.
– Target 9.4: The acquisition of Carbon Engineering by Occidental Petroleum indicates a commitment to upgrading infrastructure and retrofitting industries to make them more sustainable.
– Target 13.2: Occidental Petroleum’s collaboration with Carbon Engineering demonstrates the integration of climate change measures into their strategies and planning.
– Target 17.16: The partnership between Occidental Petroleum, Carbon Engineering, and other stakeholders represents an enhanced global partnership for sustainable development.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets. The article primarily focuses on the acquisition and partnership between Occidental Petroleum and Carbon Engineering, without providing specific metrics or indicators for measuring progress.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: fortune.com
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