![]() ![]() In terms of expecting more acquisitions in the carbon capture and storage sector, Svante appears one of the most likely targets, having launched a pilot plant in 2021 and signed partnership agreements with multiple strategic equity investors. But its investors are primarily financial, reflecting a strategy that involves the company signing offtake agreements with financial services and tech businesses to remove carbon on their behalf to help those clients meet net zero targets. On the startup side, Climeworks has some of the most advanced operations, having launched a pilot facility in Iceland two years ago. ![]() It broke ground on its flagship DAC project in Texas three months ago, a facility expected to capture 500,000 tons of CO2 a year from 2025, and its development strategy has a high-end scenario of 135 DAC plants by 2035. Occidental has some of the most ambitious CCS plans among corporate investors. Consumer electronics companies have also been active investors in this area, with Microsoft and Samsung both backing multiple CCS startups. So, who else could be in line for a similar exit? Here are the 10 highest funded startups in the sector along with their corporate backers.Ĭhevron Technology Ventures has been one of the most prominent corporate investors in carbon capture and storage, while fellow oil and gas CVC unit Equinor Ventures has also backed several startuos. Which CCS startups could be next for an acquisition? The deal is not the first big exit for a CCS company – ArcelorMittal, Mitsui, Novo, Siemens and Petronas-backed LanzaTech got a Nasdaq listing through a $2bn reverse merger in February this year – but it does represent the first big M&A transaction in the sector. “Together, Occidental and Carbon Engineering can accelerate plans to globally deploy DAC technology at a climate-relevant scale and make DAC the preferred solution for businesses seeking to remove their hard-to-abate emissions.” “The acquisition enables Occidental to catalyse broader development partnerships for DAC deployment in the most capital efficient and valuable way,” Occidental president and CEO Vicki Hollub said this week. Earlier backers include Occidental unit Oxy Low Carbon Ventures, which will oversee Carbon Engineering’s activities post-acquisition, as well as mining group BHP and petroleum supplier Chevron’s venture arms. ![]() Occidental is already working on similar technology through 1PointFive, a subsidiary that plans to bring its own DAC project online in 2025.Ĭanada-based Carbon Engineering had raised over $110m before adding an undisclosed amount from corporates Airbus and Air Canada in late 2022. Photos courtesy of Carbon Engineering, Ltd.Ĭarbon Engineering became the first carbon capture and storage (CCS) company to achieve a big acquisition exit for its investors this week, after one of those investors, oil and gas producer Occidental agreed to buy it for $1.1bn in cash.ĬCS has emerged as a notable part of the energy transition in recent years, with the traditional fossil fuel industry especially keen to back the technology as it could hypothetically help them meet net zero targets without having to make large-scale changes or reductions to their core businesses.Ĭarbon Engineering’s Direct Air Capture (DAC) system extracts carbon dioxide (CO2) from the air through a series of chemical reactions, a process it compares to photosynthesis. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |