(AOF) – Oil and gas company, Occidental Petroleum has entered into a definitive purchase agreement to acquire all outstanding shares of Carbon Engineering Ltd. for a total cash consideration of approximately $1.1 billion, which will be paid in three approximately equal annual payments, the first being made upon closing of the transaction. This transaction is expected to close before the end of 2023, subject to Canadian court review, Canadian and U.S. regulatory approvals and other customary closing conditions.
Occidental has been working with Carbon Engineering on the deployment of Direct Air Capture (DAC) since 2019.
The acquisition of Carbon Engineering aligns with Occidental’s integrated net-zero strategy and provides Occidental, through its subsidiary 1PointFive, with the opportunity to rapidly advance DAC technology breakthroughs and accelerate deployment of the DAC as a large-scale, cost-effective, global carbon removal solution.
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Biogas to green activities
Obtained through the decomposition of waste, it falls into the category of green energy. It is part of the strategy of many countries, particularly in Europe, to reduce their dependence on hydrocarbon imports. The oil groups have strong ambitions in the field, as revealed by two recent operations. The British BP took over the American Archaea Energy for 4.1 billion dollars. Then, the Anglo-Dutch, Shell, announced the acquisition of the Danish Nature Energy for 2 billion dollars. These transactions show high valuation levels, underlining the strong potential of the sector. TotalEnergies had already taken a stake in the American Clean Energy Fuels Corp in 2018, of which it now holds 19%. It recently joined forces with Veolia to recover biomethane from waste treatment facilities.