SQUAMISH, British Columbia (November 17, 2022) — Climate solutions company, Carbon Engineering (CE), has received millions in investments from Aviation industry leaders Airbus and Air Canada. These investments support the advancement of CE’s Direct Air Capture (DAC) technology that pulls carbon dioxide (CO2) directly out of the air at large, industrial scale.
This funding will contribute to CE’s ongoing technology development work at the CE Innovation Centre, the world’s largest dedicated DAC research and development facility. Located in Squamish, Canada, this centre is the site from which CE is continuously improving its technology so that greater efficiencies and cost reductions can be incorporated into commercial DAC facilities worldwide.
DAC delivers two of the most promising pathways to decarbonizing aviation: through carbon dioxide removal (CDR) as well as sustainable aviation fuel (SAF) made from atmospheric CO2. Funding part of CE’s technology development efforts is a collaborative approach by Airbus and Air Canada to help accelerate scalable, affordable decarbonization solutions.
This transaction follows Airbus’ purchase of 400,000 tonnes of CDR credits from CE’s U.S. development partner 1PointFive, and subsequent announcement of airline interest in CDR at the Farnborough Air Show. It is another example of concrete steps the aviation sector is taking to reach net zero, and highlights the industry’s confidence in DAC as a tool to support aviation decarbonization goals.
CE’s DAC process uses large fans to pull in air and then, through series of processes, extracts the CO2 while returning the rest of the air to the environment. The captured atmospheric CO2 can be used to reduce aviation emissions by producing SAF that is drop-in compatible with today’s aircraft. The captured CO2 can also be safely and durably stored in geologic reservoirs to deliver CDR that can counterbalance residual emissions.
The transaction is also a key element of Airbus’ strategy to grow its contribution to the Canadian economy, including its support for the recently-launched Clean Technology Key Industrial Capability under the Industrial and Technological Benefits Policy.
QUOTES:
Karine Guenan, VP ZEROe Ecosystem, Airbus said: “We are proud to be investing in Carbon Engineering, reaffirming our commitment to the use of direct air carbon capture as a two-fold solution for the decarbonisation of the aviation industry.”
Michael Rousseau, President & Chief Executive Officer, Air Canada said: “We remain focused on seeking innovative, long-term, sustainable GHG emissions reduction solutions for aviation, and carbon capture is one we have outlined in our strategy to achieving net-zero GHG emissions by 2050. Last year, we became the first Canadian airline to sign an MOU with CE to explore carbon capture scalability and other initiatives for our industry. We are proud to invest in CE to further advance new, transformational technologies towards carbon removal commercially.”
The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry said: “Our government continues to support projects that create jobs today that will help to develop the green economy of the future. Airbus’ investment, which is made through Canada’s Industrial and Technological Benefits Policy, will support workers at Carbon Engineering and provide the aviation industry with affordable solutions to reduce its carbon footprint.”
Daniel Friedmann, CEO, CE said: “CE’s DAC technology provides a scalable, affordable solution to help decarbonize aviation. We are thankful to Airbus and Air Canada for taking action and continuing to lead the way by helping accelerate solutions for the industry and for the climate.”
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Please find the news conference recording here.
About Carbon Engineering:
Carbon Engineering (CE) is a climate solutions company. CE is focused on the global deployment of large-scale Direct Air Capture (DAC) technology that captures carbon dioxide out of the atmosphere so it can be permanently stored deep underground or used to produce clean, affordable transportation fuels. With its partners, CE is working to deploy large-scale, commercial DAC facilities in multiple markets around the globe. More at carbonengineering.com.
HOUSTON (August 25, 2022) – Occidental (NYSE: OXY) and its subsidiary 1PointFive today announced they plan to begin detailed engineering and early site construction for their first large-scale Direct Air Capture (DAC) plant in Ector County, Texas, near Oxy’s portfolio of acreage and infrastructure that are conducive to safe and secure storage of carbon dioxide.
The first stage of construction, which includes site preparation and road work, is scheduled to begin in the third quarter of 2022 and start-up is expected in late 2024. Upon completion, the first DAC plant will be the world’s largest of its kind and would be an important step in advancing Oxy’s low-carbon strategy to deliver large-scale carbon management solutions that accelerate a net-zero economy. Once operational, the plant is expected to capture up to 500,000 metric tons of carbon dioxide per year with the capability to scale up to 1 million metric tons per year. 1PointFive has announced a scenario to deploy 70 DAC facilities worldwide by 2035 under current compliance and market scenarios.
The decision to proceed with construction follows the successful completion of a Front-End Engineering and Design (FEED) study and extensive testing and validation at the Carbon Engineering Innovation Centre. 1PointFive partnered with Carbon Engineering, a climate solutions company, to commercialize and deploy DAC technology at scale. 1PointFive has also agreed on substantive terms with Worley for engineering, procurement, and construction (EPC) services, and expects to work toward a definitive agreement for the EPC contract by the end of the year.
1PointFive and Carbon Engineering continue to progress innovation workstreams to improve the DAC technology at the Innovation Centre. The focus is on carbon capture and energy efficiency, as well as operating cost improvements during the life of the plant.
“The construction of Oxy’s first DAC plant is an important milestone on the pathway to achieving our net-zero ambitions and helping the world meet the Paris Agreement’s climate goals,” said Vicki Hollub, President and CEO, Oxy. “We are fortunate to partner with Carbon Engineering and Worley, who share our vision in creating a carbon removal industry that can accelerate the path to net zero.”
“Construction of this transformative facility begins our journey toward providing commercial-scale DAC solutions that reduce and remove carbon emissions,” said Richard Jackson, President, U.S. Onshore Resources and Carbon Management, Operations, Oxy. “This plant’s development is rooted in our carbon management expertise, strong record of delivering major projects and existing infrastructure that supports the commercialization of carbon capture, utilization and storage technologies. This plant could also anchor future low carbon projects and strengthen our portfolio of carbon management solutions.”
“Carbon Engineering has been innovating for more than a decade to deliver climate solutions at megaton scale,” said Daniel Friedmann, CEO, Carbon Engineering. “Now, with construction starting on this first, large-scale facility, we are seeing our vision become a reality. In collaboration with our partners at 1PointFive and Oxy, today marks a pivotal moment in the deployment of Carbon Engineering’s large-scale Direct Air Capture solutions.”
The plant is expected to provide cost-effective solutions that hard-to-decarbonize industries can use in conjunction with their own emissions reduction programs to help achieve net zero. Captured carbon dioxide can be safely sequestered deep underground in saline formations or used in the production of hydrocarbons to enable lower-carbon or net-zero transportation fuels, and in products like chemicals and building materials.
1PointFive has advanced product sales for the plant, including carbon removal credit purchases from Airbus, Shopify and ThermoFisher, and Oxy reached an offtake agreement with SK Trading International for an opportunity to purchase net-zero oil.
Oxy also entered into an agreement with Origis Energy to provide zero-emission solar power for the DAC plant and other projects in the Permian Basin.
The project is expected to employ more than 1,000 people during the construction phase and up to 75 once operational. The Inflation Reduction Act’s increased incentives will further accelerate DAC deployment as a solution to help achieve net zero.
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About Occidental
Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world. Visit oxy.com for more information.
About 1PointFive
1PointFive is a Carbon Capture, Utilization and Sequestration (CCUS) platform that is working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions, including Carbon Engineering’s Direct Air Capture (DAC) and AIR TO FUELSTM technologies alongside geologic sequestration hubs. More at 1PointFive.com.
About Carbon Engineering
Carbon Engineering (CE) is a climate solutions company. CE is focused on the global deployment of large-scale Direct Air Capture (DAC) technology that captures carbon dioxide out of the atmosphere so it can be permanently stored deep underground or used to produce clean, affordable transportation fuels. With its partners, CE is working to deploy large-scale, commercial DAC facilities in multiple markets around the globe. More at carbonengineering.com.
AIR TO FUELSTM is a registered trademark of Carbon Engineering Ltd.
Occidental Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including those relating to Occidental’s deployment and use of DAC technology as part of its net-zero strategy, which are based on Occidental’s current expectations, beliefs, plans, estimates, and forecasts. All statements other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws. Words such as “will,” “may,” “expect,” “plan,” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Occidental does not undertake any obligation to update, modify, or withdraw any forward-looking statements as a result of new information, future events, or otherwise.
These statements are not guarantees of future performance as they involve assumptions that may prove to be incorrect and risks and uncertainties, including those that are beyond Occidental’s control. Factors that may cause actual results to differ materially from forward-looking statements include Occidental’s ability to access necessary technology, to develop and employ existing or new technology on a commercial scale, to access capital, to collaborate with third parties and customers, and to receive approvals from regulatory bodies, as well as market conditions, geopolitical events, and scientific developments. Additional factors that may affect Occidental’s ability to deploy DAC technology can be found in Occidental’s public disclosure and its filings with the U.S. Securities and Exchange Commission (SEC), which may be accessed at Occidental’s website at oxy.com or the SEC’s website at sec.gov. Information included herein is not necessarily material to an investor in Occidental’s securities.
This approach is designed to facilitate the delivery of Direct Air Capture (DAC) plant rollout and financing, and supports a development scenario of 70 DAC plants online by 2035 to capture millions of tonnes of carbon dioxide from the atmosphere
HOUSTON, Texas and SQUAMISH, British Columbia (June 7, 2022) — 1PointFive, a subsidiary of Occidental’s (NYSE: OXY) Low Carbon Ventures business, and Carbon Engineering Ltd. (CE), a climate solutions company, announced a Direct Air Capture (DAC) plant deployment approach to help execute large numbers of DAC projects around the world.
The deployment approach standardizes the design of plants to help deliver complete, operationally ready DAC facilities to local partners. Through this process, plant components and equipment will be modularized, mass manufactured and then assembled on-site using an established supply chain of vendors.
This approach combines the partners’ DAC technology, large-scale carbon dioxide management, project experience and extensive storage infrastructure. CE will provide the DAC technology, while 1PointFive will build and deploy the DAC plants, leveraging Oxy’s strong project engineering and delivery expertise. Local partners will complete the team, bringing complementary experience and regional expertise.
From CE’s dedicated DAC development and innovation centre in British Columbia, Canada, CE and 1PointFive are continuing to optimize DAC technology in real-world operations and reduce the cost of capture per tonne. The deployment approach also enables the swift introduction of next generation improvements into commercial facilities.
1PointFive has announced a scenario of deploying 70 DAC facilities by 2035, each with an expected capacity of up to 1 million tonnes per year, under current policy and voluntary and compliance market scenarios. The company estimates that up to 135 DAC facilities could be deployed with an increase in global policy initiatives and demand in the voluntary market.
1PointFive’s first DAC facility is progressing through front-end engineering and design (FEED) and is expected to be operational in late 2024 in Texas. Advance product sales for this facility, including agreements with Airbus, Shopify and ThermoFisher, and offtake frameworks, like the agreement with SK Trading International, signal the increasing demand from the voluntary market for large-scale, DAC-enabled climate solutions.
QUOTES:
Michael Avery, President, 1PointFive said: “We are committed to delivering large-scale DAC solutions to remove carbon dioxide from the atmosphere and help achieve the goals of the Paris Agreement. We believe this deployment approach and our partnership with CE will support rapid, global deployment of DAC facilities to meet the urgency of the climate challenge and growing customer demand for DAC-enabled net-zero solutions.”
CE CEO, Daniel Friedmann, said: “The most recent IPCC report reiterated again that, alongside emission reductions, we need to remove vast amounts of carbon dioxide from the atmosphere to achieve net-zero targets by 2050. To address this critical need, we’re working with 1PointFive to offer DAC facilities as a ready-to-operate, turnkey solution. We see this new, franchise-like model as the most feasible, affordable and financeable path forward for CE’s DAC technology to make a meaningful impact on the huge climate challenge.”
More information on Occidental’s low-carbon strategy can be found in OLCV’s recent investor update.
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About 1PointFive
1PointFive is a Carbon Capture, Utilization and Sequestration (CCUS) platform that is working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions, including Carbon Engineering’s Direct Air Capture (DAC) and AIR-TO-FUELS™ technologies alongside geologic sequestration hubs. More at 1PointFive.com.
About Carbon Engineering
Carbon Engineering (CE) is a climate solutions company. CE is focused on the global deployment of large-scale Direct Air Capture (DAC) technology that captures carbon dioxide (CO2) out of the atmosphere so it can be permanently stored deep underground or used to produce clean, affordable transportation fuels. With its partners, CE is working to deploy large-scale, commercial DAC facilities in multiple markets around the globe. More at carbonengineering.com.
Occidental Forward Looking Statement
This news release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including those relating to Occidental’s deployment and use of DAC technology as part of its net-zero strategy, which are based on Occidental’s current expectations, beliefs, plans, estimates and forecasts. All statements other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws. Words such as “will,” “may, “expect,” “plan” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.
These statements are not guarantees of future performance as they involve assumptions that may prove to be incorrect and risks and uncertainties, including those that are beyond Occidental’s control. Factors that may cause actual results to differ materially from forward-looking statements include Occidental’s ability to access necessary technology, to develop and employ existing or new technology on a commercial scale, to access capital, to collaborate with third parties and customers and to receive approvals from regulatory bodies, as well as market conditions, geopolitical events, and scientific developments. Additional factors that may affect Occidental’s ability to deploy DAC technology can be found in Occidental’s public disclosure and its filings with the U.S. Securities and Exchange Commission (SEC), which may be accessed at Occidental’s website at oxy.com or the SEC’s website at sec.gov. Information included herein is not necessarily material to an investor in Occidental’s securities.
Purchase marks a key milestone for the decarbonization of the aviation industry
HOUSTON — March 17, 2022 —1PointFive, a subsidiary of Occidental’s (NYSE: OXY) Oxy Low Carbon Ventures business, announced today the sale of 400,000 tonnes of carbon removal credits from its planned first Direct Air Capture (DAC) facility using Carbon Engineering’s DAC solution to aerospace leader Airbus (NYSE: EADSY).
Under the agreement, Airbus has pre-purchased the capture and permanent sequestration of 100,000 tonnes of carbon dioxide (CO2) from the atmosphere each year for four years—with an option to secure more volume in the future.
1PointFive’s contract is indicative of the availability of a feasible, affordable, and scalable decarbonization solution for aviation and other hard-to-abate industries. It provides another complementary solution for Airbus to address its carbon emissions and to support the broader decarbonization efforts currently underway across the air transport industry.
“We’re proud to partner with Airbus on an enormous opportunity to help the aviation industry and other hard-to-abate sectors decarbonize,” said 1PointFive CEO Michael Avery. “Direct Air Capture will be a scalable, practical solution that aerospace pioneers like Airbus can integrate into their decarbonization roadmaps to contribute to climate action.”
1PointFive’s first DAC facility, which will include pure sequestration, is in the process of being deployed using Carbon Engineering’s industrial-scale DAC solution. The facility will extract atmospheric CO2 and permanently store it deep underground in geologic formations delivering permanent and verifiable carbon dioxide removal.
Construction of the first DAC facility is expected to begin in the second half of 2022 in the Permian Basin. When fully operational, the DAC facility is expected to be the largest in the world, with a one-million-tonne annual CO2 removal volume capacity.
“Demand for scalable and affordable climate solutions continues to grow rapidly,” said Carbon Engineering CEO Daniel Friedmann. “We congratulate 1PointFive and Airbus on their work together to provide feasible pathways for the decarbonization of aviation.”
Resilient LLP advised 1PointFive for this agreement with Airbus.
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About 1PointFive
1PointFive is a Carbon Capture, Utilization and Sequestration (CCUS) platform that is working to help curb global temperature rise to 1.5°C by 2050 through the deployment of decarbonization solutions, including Carbon Engineering’s Direct Air Capture and AIR TO FUELSTM solutions alongside geologic sequestration hubs. Visit 1PointFive.com for more information.
About Carbon Engineering
Carbon Engineering (CE) is a climate solutions company. CE is focused on the global deployment of large-scale Direct Air Capture (DAC) technology that captures carbon dioxide (CO2) out of the atmosphere so it can be permanently stored deep underground or used to produce clean, affordable transportation fuels. With its partners, CE is working to deploy large-scale, commercial DAC facilities in multiple markets around the globe. More at carbonengineering.com.
Occidental Forward Looking Statement
This news release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including those relating to Occidental’s deployment and use of DAC technology as part of its net-zero strategy, which are based on Occidental’s current expectations, beliefs, plans, estimates, and forecasts. All statements other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws. Words such as “will,” “may, “expect,” “aim,” plan,” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.
These statements are not guarantees of future performance as they involve assumptions that may prove to be incorrect and risks and uncertainties, including those that are beyond Occidental’s control. Factors that may cause actual results to differ materially from forward-looking statements include Occidental’s ability to access necessary technology, to develop and employ existing or new technology on a commercial scale, to access capital, to collaborate with third parties and customers, and to receive approvals from regulatory bodies, as well as market conditions, geopolitical events, and scientific developments. Additional factors that may affect Occidental’s ability to deploy DAC technology can be found in Occidental’s public disclosure and its filings with the U.S. Securities and Exchange Commission (SEC), which may be accessed at Occidental’s website at oxy.com or the SEC’s website at sec.gov. Information included herein is not necessarily material to an investor in Occidental’s securities.
Today, Carbon Engineering (CE) announces the appointment of Daniel Friedmann as Chief Executive Officer (CEO), to succeed Steve Oldham who held the position of CEO since 2018. As a technology industry leader with proven success managing high growth, Daniel’s experience and acumen is ideally suited to lead CE’s next stage of commercialization and global expansion.
Daniel Friedmann, CEO of Carbon Engineering
Daniel Friedmann has assumed the role of CEO having served on CE’s board for five years, with the past four years as Board Chair.
“We are very fortunate to secure Dan Friedmann as CE’s next CEO,” said David Keith, CE’s Founder and Board Member. “Since joining our board in March, 2017, Dan has played a pivotal role in guiding CE’s business and commercialization strategy. Dan’s experience at MDA and his track record at CE position him for a seamless transition to lead CE through the challenges and opportunities of scaling a global business.
“We thank Steve for his exceptional service to the company over the last four years, and recognize Steve’s tremendous impact on CE as well as on the Direct Air Capture industry as a whole.”
Daniel Friedmann brings a wealth of experience and proven success to the role of CEO, having led Canadian aero-space company MDA as CEO for 20 years, before retiring in 2016. During his tenure at MDA, the company’s revenue grew 19-fold and market capitalization 35-fold. He was named Brendan Wood TopGun CEO in Canada for 2015-2016, a designation awarded as an expression of the highest level of confidence in a CEO, as voted by key investors and stakeholders.
“Carbon Engineering is embarking on an exciting period of global growth, working with our partner, Oxy, and other industry-leaders to deploy affordable and scalable climate solutions that have the potential to play an integral role in the net zero revolution,” said Daniel Friedmann, CE’s CEO. “I look forward to leading CE through this next stage of expansion and innovation, and to continuing to drive CE forward on its important mission.”
