Chevron and Occidental Back Carbon Engineering's Direct Air Capture Tech
Carbon Engineering secures funding from Chevron and Occidental Petroleum to commercialize its direct air capture technology, which pulls carbon dioxide from the atmosphere to create synthetic fuels.
Carbon Engineering locks in crucial financing from two major oil and gas giants, Chevron and Occidental Petroleum, to bring its carbon removal technology to market. The undisclosed investment from Oxy Low Carbon Ventures and Chevron Technology Ventures supports the commercialization of a system that pulls carbon dioxide directly from the atmosphere. This funding arrives as new legislation in California and British Columbia makes low-carbon fuels increasingly economically viable.
The Canadian company operates a pilot plant in Squamish, British Columbia, where giant fans pull ambient air into a processing facility. There, the air undergoes a chemical treatment with potassium hydroxide that captures the carbon dioxide and transforms it into small white pellets. Workers then heat these pellets to extract a nearly pure carbon dioxide gas, which is ultimately prepared for various industrial applications.
Carbon Engineering currently uses this purified gas to create new synthetic fuels or for enhanced oil recovery rather than underground sequestration, which currently offers no economic return. The company aims to remove carbon dioxide from the atmosphere for roughly $100 per ton, though it needs to achieve scale to become truly profitable. Alongside competitors like ClimeWorks and Global Thermostat, Carbon Engineering attracts notable tech billionaire investors, including Microsoft co-founder Bill Gates, who are deeply focused on combating global climate change.