## Occidental Doubles Down on Carbon Capture with Acquisition of Holocene
In a move signaling a continued commitment to carbon removal technologies, oil and gas giant Occidental (Oxy) has acquired Holocene, a direct air capture (DAC) startup. The deal, executed through Oxy Low Carbon Ventures, marks the second DAC company brought under Occidental’s umbrella in just two years. The acquisition price remains undisclosed.
Holocene, known for its amino acid-based carbon removal technology, had previously secured a significant $10 million agreement with Google to remove 100,000 metric tons of carbon by the early 2030s. The company’s proposed price of $100 per metric ton represented a considerable cost reduction compared to the current industry average of around $600.
Occidental’s interest in DAC technology stems from its use in enhanced oil recovery (EOR). This process involves injecting CO2 underground to stimulate oil wells, increasing production. The company previously acquired Carbon Engineering in 2023 for $1.1 billion, demonstrating its strategic focus on carbon capture.
An Occidental spokesperson confirmed that Holocene’s technology will be integrated into the company’s ongoing direct air capture research and development efforts. This acquisition underscores the potential for DAC to play a role in the energy transition, particularly given the incentives provided by the Inflation Reduction Act. These tax credits are dependent on factors such as the use of zero-emission power and the ultimate fate of the captured CO2, with enhanced oil recovery being one potential, albeit controversial, application.