A wholly owned subsidiary of Occidental called Oxy Low Carbon Ventures will buy all of Carbon Engineering's outstanding equity in accordance with the terms of the binding acquisition agreement.

Three equal annual payments will be made to complete the purchase, with the first payment being made upon closing.

Subject to usual closing requirements, such as regulatory approvals and Canadian judicial reviews, the transaction's completion is anticipated to occur by the end of 2023.

Since 2019, Occidental and Carbon Engineering have been working together with a focus on adopting the DAC technology.

According to the business, this acquisition supports Occidental's net-zero ambition and will enable it to use Carbon Engineering's expertise to promote DA technology advancements and hasten the adoption of the technology as a globally scalable and affordable carbon removal solution.

For efficient carbon capture, Carbon Engineering provides established procedures and tested industrial machinery.