Carbon removal startup Holocene bought by oil and gas giant Occidental

Occidental Petroleum has acquired Holocene, marking the second direct air capture (DAC) startup the company has purchased in the last two years. The acquisition was made through Occidental's subsidiary, Oxy Low Carbon Ventures, though the financial terms were not disclosed. Holocene is known for its amino acid-based carbon removal technology, which it has been developing under a $10 million agreement with Google to remove 100,000 metric tons of carbon by the early 2030s at a competitive rate of $100 per metric ton. This acquisition aligns with Occidental's strategy of using DAC technology to bolster its operations, particularly for enhanced oil recovery, a process where CO2 is injected into oil wells to increase extraction efficiency.
This purchase underscores the growing interest and investment in carbon capture technologies, particularly as these methods become more economically viable and environmentally necessary. Occidental's continued investment in DAC is also likely influenced by the potential for tax credits under the Inflation Reduction Act, which incentivizes the use of zero-emission power in carbon capture processes. The acquisition of Holocene follows Occidental's 2023 purchase of another DAC company, Carbon Engineering, for $1.1 billion, highlighting a strategic pivot towards sustainable practices within the fossil fuel industry. This move is significant as it may signal a broader trend of traditional energy companies diversifying their portfolios to include more sustainable technologies as part of their long-term strategy to address climate change and adapt to new regulatory and market conditions.
RATING
The news story about Occidental's acquisition of Holocene presents a well-researched and timely account of a significant development in the carbon capture industry. Its strengths lie in its factual accuracy, clear presentation, and relevance to ongoing environmental and policy debates. The story effectively highlights the intersection of fossil fuel interests with emerging green technologies, providing insights into strategic corporate shifts.
However, the story could improve in areas of balance and transparency by incorporating a wider range of perspectives, particularly from environmental groups or industry critics, and by disclosing more about the financial aspects of the acquisition. While generally clear and engaging, the story could further simplify technical jargon for broader accessibility and delve deeper into the potential controversies surrounding fossil fuel companies' involvement in carbon capture.
Overall, the article is a strong piece of journalism that informs readers about important developments in climate change mitigation strategies, with room for enhancement in perspective and depth. It successfully engages with public interest topics and has the potential to influence discussions around corporate responsibility and environmental policy.
RATING DETAILS
The story accurately reports the acquisition of Holocene by Occidental, aligning with the factual details that the acquisition was executed through Oxy Low Carbon Ventures, a subsidiary of Occidental, and that the financial terms were undisclosed. It correctly states that Holocene had a deal with Google to deliver carbon removal credits, and the cost per metric ton is noted as lower than current estimates.
However, areas needing further verification include the exact amount of the acquisition price, which remains undisclosed. The story also mentions a specific price for carbon removal that is significantly lower than current costs, a claim that would benefit from further market comparison for absolute confirmation. Overall, the story's claims are well-supported by external sources, but it could better address these gaps to enhance its accuracy.
The story provides a balanced view of Occidental's acquisition by discussing both the technological advancements and the strategic motivations behind the purchase. It highlights the potential environmental benefits of direct air capture technology while acknowledging Occidental's interest in enhanced oil recovery, which could be seen as a more traditional fossil fuel industry practice.
However, the story could be more balanced by including perspectives from environmental groups or industry experts who might provide critical viewpoints on the implications of such acquisitions by fossil fuel companies. This would provide a fuller picture of the potential environmental and economic impacts, ensuring that the story doesn't inadvertently favor Occidental's narrative.
The story is generally clear and well-structured, with a logical flow that guides the reader through the main points. The language is straightforward, making the technical aspects of direct air capture technology accessible to a general audience.
However, the story could benefit from a more detailed explanation of certain technical terms, such as "enhanced oil recovery," to ensure all readers can fully grasp the implications. Overall, the story's clarity is strong, but slight improvements could enhance comprehension for those less familiar with the subject matter.
The story cites HeatMap as the initial source of the news, which suggests a level of investigative reporting. It also references an Occidental spokesperson, adding credibility to the claims about the company's plans. However, the story would benefit from a wider range of sources, such as independent industry analysts or environmental experts, to provide additional context and authority.
The use of specific sources like company spokespeople and industry reports lends reliability, but the potential for bias exists if these are the only perspectives included. Expanding the range of sources would enhance the story's credibility and provide a more comprehensive view of the situation.
The story provides some transparency by disclosing the nature of the acquisition and the involvement of Oxy Low Carbon Ventures. However, it lacks detailed information about the methodology used to determine the cost of carbon removal and the specifics of the financial terms of the acquisition, which remain undisclosed.
There is also a lack of disclosure regarding any potential conflicts of interest, such as the relationship between Occidental and Holocene beyond the acquisition. More transparency about these aspects would improve the reader's understanding of the underlying factors influencing the story.
Sources
- https://www.esgtoday.com/oxy-acquires-carbon-removal-tech-startup-holocene/
- https://carbonherald.com/occidental-buys-holocene-marking-its-second-dac-technology-purchase/
- https://esgnews.com/oxy-buys-dac-startup-holocene-following-100-ton-carbon-removal-deal-with-google/
- https://www.ogj.com/energy-transition/article/55284078/occidental-acquires-dac-technology-company-holocene
- https://beamstart.com/news/as-the-trade-war-escalates-17449203421565
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