• Strategic DAC Expansion: Occidental deepens its carbon removal capabilities with its second DAC acquisition, aiming to scale and optimize CO₂ capture technology.
• Cost Leadership in Carbon Removal: Holocene’s DAC breakthrough—$100/ton removal deal with Google—sets a new price benchmark for the industry.
• Technology Synergies: Combining Holocene’s low-temperature, liquid-based DAC with Carbon Engineering’s approach aims to lower costs and accelerate deployment.

Occidental (Oxy) has acquired Holocene, a Tennessee-based direct air capture (DAC) startup, in a strategic move to consolidate and scale its carbon removal operations. The financial terms were not disclosed, but the acquisition marks Occidental’s second major investment in DAC technology following its $1.1 billion purchase of Carbon Engineering in 2023.

Occidental is positioning itself as a market leader in DAC, with its subsidiary Oxy Low Carbon Ventures spearheading these acquisitions. The company is currently developing Project Stratos in Ector County, Texas—anticipated to be the world’s largest DAC facility, designed to capture 500,000 tonnes of CO₂ annually.

“We believe combining these technologies will enable us to advance our R&D activities to improve the efficiency of our direct air capture process, reduce CO2 capture costs, and accelerate DAC deployment,” said William Fitzgerald, Occidental spokesperson.

Founded in 2022, Holocene uses a novel, liquid-based thermochemical DAC system that employs amino acids and organic compounds to extract CO₂ from the air. The gas is then concentrated and heated at low temperatures to produce a pure stream for transport and permanent geological storage. This approach is designed to be highly scalable and cost-efficient.

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Holocene’s capabilities were spotlighted in 2024 when it launched a pilot plant capturing ~10 tonnes of CO₂ annually and signed a landmark deal with Google to deliver 100,000 tonnes of carbon removal credits at just $100 per ton—the lowest price recorded for DAC-based removal.

“The dream to see our liquid, low-temperature DAC technology deployed at scale is that much closer to becoming reality,” said Holocene CEO and Co-founder Anca Timofte.
“I’m proud of the team and of all our work in getting here, and grateful that Oxy recognized our potential and the possible synergies between our technologies.”

The Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) have both highlighted DAC as a key enabler for net-zero targets. Oxy’s dual-technology approach—with Holocene and Carbon Engineering—could significantly improve the scalability and cost-efficiency of carbon removal, addressing increasing investor and regulatory pressure for credible decarbonization strategies.

With new EPA permits secured to sequester CO₂ from STRATOS in deep underground wells, Occidental is positioned to lead in what is emerging as a high-growth segment in the climate tech and energy transition space.

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