Oil and gas companies Chevron and Occidental are investing in Canadian-based clean energy company Carbon Engineering (CE) to accelerate the commercialization of their CO2 removal technology, called Direct Air Capture (DAC).
CE received equity investment from Occidental Petroleum Corporation's subsidiary, Oxy Low Carbon Ventures, LLC (OLCV) and Chevron Technology Ventures (CTV), the venture capital division of Chevron Corporation. The amount raised was undisclosed.
In addition to product-to-market acceleration of DAC, the investment will also assist in the deployment of its AIR TO FUELS technologies. AIR TO FUELS "combines CO2 from DAC with clean hydrogen from water electrolysis – providing a second pathway for reducing transportation emissions by synthesizing ultra-low carbon intensity liquid fuels," CE said.
"CE's AIR TO FUELS products are fully compatible with existing cars, trucks, ships and planes, allowing existing vehicles to dramatically reduce their carbon emissions without modification," it added.
According to CE, the investment highlights the first significant collaboration between a DAC developer and the energy industry.
CE CEO Steve Oldham said: "It is a very important time for the air capture field right now,”
"We're seeing leading jurisdictions, like California and British Columbia, creating markets for low carbon fuels and technologies like DAC, through effective climate policy. These efficient market-based regulations, and action from energy industry leaders like Occidental and Chevron, show the power of policy in driving innovation and achieving emissions reductions while delivering reliable and affordable energy," he added.