Occidental Petroleum will acquire Carbon Engineering in a deal valued at more than $1 billion, signaling increasing interest among oil majors in companies focused on carbon mitigation. The deal is set to be finalized by the end of the year, as announced in a press release on Tuesday. This strategic move will enable Occidental to develop carbon air capture solutions, aligning with the growing importance of clean energy in the corporate sector. Notably, Occidental and Carbon Engineering have previously collaborated on various projects.

Driving the Transition to Clean Energy

Occidental, a top holding of Warren Buffett’s Berkshire Hathaway, is among the few companies exploring the capture, use, and storage of carbon as a long-term business opportunity. This process, known as Carbon Capture, Utilization, and Storage (CCUS), plays a crucial role in the broader shift to clean energy. CCUS offers an alternative approach to managing emissions that are otherwise difficult to eliminate completely by storing or repurposing the gas. An analyst from Gordon Haskett, Don Bilson, highlights the growing demand for carbon capturers: “Other than maybe Barbie dolls, nothing is flying off the shelves faster these days than ‘Carbon Capturers’.”

Accelerating Carbon Removal Offering

Occidental plans to integrate Carbon Engineering with its existing venture, 1PointFive, to expedite the development of global carbon removal solutions. While CCUS projects have gained traction in recent years, the volume of global carbon storage needs to increase significantly to effectively combat climate change. Energy research firm Wood MacKenzie estimates that the capacity of carbon storage needs to grow over four times the current projections by 2050 to limit global warming to 1.5 degrees above pre-industrial levels.

Investment Opportunities in Carbon Technology

Occidental’s focus on CCUS has captured the attention of Wall Street, with Goldman Sachs identifying it as a potential benefactor of the Inflation Reduction Act’s benefits for carbon storage. Other companies, such as Baker Hughes, Weyerhaeuser, and Bloom Energy, are also being closely watched by Wall Street as potential winners in the growing carbon technology sector. To gain further insights into carbon capture and major stocks in this space, visit AsumeTech Pro.