Business Collaboration Oxy Low Carbon Ventures, Chevron Technology Ventures Invest in CE
The equity investment by the two global energy companies in Carbon Engineering will enable the company to advance its innovative low-carbon technology i.e. the Direct Air Capture technology.
British Columbia/Canada – Carbon Engineering (CE), has received equity investment from two global energy companies, Oxy Low Carbon Ventures, a subsidiary of Occidental Petroleum Corporation and Chevron Technology Ventures, the venture capital arm of Chevron Corporation. These investments will accelerate the commercialisation of the firm’s proven Direct Air Capture (DAC) technology that removes carbon dioxide CO₂ directly from the air.
This announcement highlights the first significant collaboration between a Direct Air Capture developer and the energy industry. With two global energy leaders investing in the said technology as a mechanism to reduce emissions from transportation and enable permanent capture of existing atmospheric CO₂ that can be utilised both in oil production and in direct synthesis of fuels.
The company has been developing DAC technology since 2009 and capturing CO₂ from the atmosphere at a pilot plant in Squamish, British Columbia since 2015. The DAC plants are location-independent and can be co-located with an oilfield operation for enhanced oil recovery (EOR). Occidental Petroleum is the industry leader in using CO₂ to enable low-cost EOR, which can increase oil recovery by 10 to 20 per cent in the fields where it is employed, while at the same time permanently sequestering the CO₂ in the reservoir. Using atmospheric CO₂ for oil recovery in this way greatly reduces the net addition of CO₂ to the atmosphere from oil production and fuel use. It opens a pathway to producing fully carbon-neutral or even net-negative fuels.