Occidental Petroleum has acquired carbon-removal startup Holocene, marking its second significant purchase in the direct air capture space within the past two years. The deal was conducted through Occidental’s subsidiary, Oxy Low Carbon Ventures, although the financial terms of the transaction remain undisclosed.
Holocene recently gained attention when it secured a $10 million agreement with Google in September, committing to remove 100,000 metric tons of carbon dioxide from the atmosphere by the early 2030s. Remarkably, Holocene agreed to do this at roughly $100 per metric ton—a price substantially lower than the current industry standard, which hovers around $600 per metric ton.
Occidental’s expansion into carbon-capture technology is part of a larger industry trend toward employing captured carbon dioxide to boost oil production through a method called enhanced oil recovery. In 2023, Occidental made headlines by purchasing another notable startup in the same field, Carbon Engineering, for $1.1 billion.
An Occidental spokesperson confirmed the company’s intention to leverage Holocene’s amino acid-based carbon extraction technology in its ongoing direct air capture research and development initiatives. The technology simultaneously positions Occidental to benefit from tax incentives outlined in the Inflation Reduction Act. The federal policy grants credits for direct air capture projects, with increased financial incentives dependent on the use of zero-emission energy sources and the subsequent use of captured carbon dioxide for enhanced oil recovery.
