(Reuters) -U.S. oil and gas producer Occidental Petroleum said on Tuesday it would acquire carbon-capture technology provider Carbon Engineering for a total cash consideration of approximately $1.1 billion.
The direct air capture (DAC) technology uses chemical reactions to remove carbon dioxide from the air, which can then be stored underground or used in products such as concrete or aviation fuel.
DAC is seen as an effective tool to neutralize greenhouse gas emissions when deployed at industrial scale.
Occidental has been working with Carbon Engineering on DAC deployment since 2019.
“The acquisition enables Occidental to catalyze broader development partnerships for DAC deployment in the most capital efficient and valuable way,” said Occidental CEO Vicki Hollub.
The deal is expected to close before the end of 2023.
(Reporting by Sourasis Bose in Bengaluru; Editing by Shilpi Majumdar)
