· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on Axios or enjoy below:
🗞️ Driving the news: A Canadian founder of a direct air capture (DAC) startup revealed that he would have preferred to sell his company to a Canadian buyer rather than U.S. oil giant Occidental Petroleum, which ultimately acquired it
• The disclosure, made in an interview for Axios’ Shocked podcast, offers a rare look at the competing interests shaping high-profile carbon removal deals
🔭 The context: Occidental, through its subsidiary 1PointFive, has become a leading investor in DAC technologies, positioning itself to integrate carbon removal into enhanced oil recovery and longer-term climate commitments
• Canada, meanwhile, has invested heavily in clean tech innovation but has seen several climate startups move abroad or sell to foreign buyers due to limited domestic financing and industrial demand
• The deal reflects ongoing tensions between national innovation ecosystems and global capital flows
🌍 Why it matters for the planet: DAC is viewed as an essential but costly tool for achieving net-zero emissions
• Its commercialization depends on large-scale investment, often from major emitters like oil and gas companies, raising concerns about whether DAC will be used primarily to offset continued fossil fuel production rather than accelerate the transition away from it
• The sale highlights both the opportunities and trade-offs in scaling carbon removal under private sector leadership
⏭️ What's next: Occidental is moving forward with plans to build large DAC facilities in the U.S., backed by Inflation Reduction Act subsidies and advance purchase agreements from corporate buyers
• Canada may face pressure to strengthen domestic investment frameworks to keep climate tech innovation at home
• The global DAC industry, still in its early stages, will likely continue to see strategic acquisitions as companies race to secure technology and project pipelines
💬 One quote: “The deal shows how decisions in carbon removal aren’t just about climate technology—they’re also shaped by capital access, geopolitics, and corporate strategy.” — Axios interview insight
📈 One stat: Occidental Petroleum, through 1PointFive, is developing DAC plants in Texas expected to capture up to 1 million metric tons of CO₂ annually
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