Occidental Petroleum subsidiary 1PointFive said recently it agreed to acquire all outstanding equity of Carbon Engineering for about $1.1 billion cash (in three annual payments). The deal provides 1PointFive “the opportunity to rapidly advance DAC (direct air capture) technology breakthroughs and accelerate deployment of DAC as a large-scale, cost effective, global carbon removal solution.” Carbon Engineering’s DAC-based climate solutions utilize standardized processes and proven industrial equipment, and Occidental said Aug. 15 the two companies have been working together on DAC deployment since 2019.
Technology that 1PointFive will use – for its first DAC plant, Stratos, under construction in Ector County in Permian Basin – was developed by Carbon Engineering, which absorbs CO2 from the air using potassium hydroxide solution. Stratos is expected to begin operations in mid-2025 and capture up to 500,000 metric tons per year of CO2 when fully operational. 1PointFive said the first stage of construction, including site preparation and road work, started recently.