Jordan Soto, executive producer, Hart Energy: Say what you will about the Inflation Reduction Act, but new tax credits are incentivizing companies to invest billions in carbon capture—what could be a pivotal component of the energy transition. Find out more in this A&D Minute powered by BOK Financial Securities.
Joining us is Andrew Dittmar, director at Enverus Intelligence Research. Andrew, how does Occidental's $1.1 billion acquisition of direct air capture firm Carbon Engineering push the industry forward?
Andrew Dittmar, director, Enverus Intelligence Research: Yeah, I think the really important piece is just that Occidental's making themselves a leader in this technology so early in its innovation cycle. Often you see the larger companies wait until you have commercialization established before they step in. But here Oxy is really looking to be a leader in innovating and driving development of DAC and the $1.1 billion purchase price, while certainly significant, is fairly modest to a company called Oxy. So they can certainly afford to take these moonshot type technologies and well fund them with their oil and gas revenue while still maintaining the kind of generous capital return programs that investors are expecting from them.
JS: Thanks, Andrew. That's your A&D Minute powered by BOK Financial Securities. Watch new A&D Minute episodes every Wednesday and sign up for our A&D Watch newsletter at hartenergy.com/deals.
2023-11-17 - Here is a look at some of this week’s renewable energy news, including Dominion Energy’s latest battery storage partnership.
2023-10-06 - Here is a look at some of this week’s renewable energy news, including a proposal by Dominion Energy to develop a dozen solar projects in Virginia.
2023-09-15 - Here is a look at some of this week’s renewable energy news, including the latest on OCI Global’s efforts to boost green ammonia production in Texas.
2023-10-27 - Here is a look at some of this week’s renewable energy news, including a battery manufacturer's $1.2 billion Arizona battery facility and the U.S. entry of Belgium-based electrolyzer manufacturer John Cockerill Hydrogen.
2023-10-13 - Here is a look at some of this week’s renewable energy news, including the formation of a coalition to ship hydrogen as ammonia from the U.S. to Europe.