Oxy announces partnership to explore fusion technology in direct air capture facilities

dac powered

Oxy Low Carbon Ventures says fusion technology holds the potential to supply emissions-free, continuous, on-demand energy to bolster power and heating requirements for Occidental’s large-scale DAC facilities. Photo via 1pointfive.com

Oxy Low Carbon Ventures, an investment arm of Houston-based energy giant Occidental, is teaming up with TAE Technologies to explore the use of TAE’s fusion technology at Occidental’s direct air capture (DAC) facilities.

Financial terms of the deal weren’t disclosed.

“Collaborating with TAE Technologies is an opportunity to build on Occidental’s portfolio of clean power sources that can provide our [DAC] facilities with reliable, emissions-free energy,” Frank Koller, vice president for power development at Oxy Low Carbon Ventures, says in a news release.

Occidental is diving headfirst into the DAC sector. The primary example of its DAC commitment is construction in West Texas of the world’s largest DAC plant through a joint venture between Occidental subsidiary 1PointFive and investment giant BlackRock. BlackRock is investing $550 million in the facility.

The project is expected to be completed in mid-2025. The facility is eventually supposed to capture up to 500,000 metric tons of carbon dioxide each year.

DAC technology pulls carbon dioxide from the atmosphere so it can be stored permanently or converted into products. While the carbon removal process sounds simple, it requires a tremendous amount of energy. That’s where fusion technology like TAE’s comes into play.

TAE’s fusion technology works by combining (or fusing) the light nuclei of elements such as hydrogen to produce energy. The energy release is managed by producing steam, which spins a turbine that drives an electric generator producing clean energy or clean heat.

Founded in 1998, Foothill Ranch, California-based TAE develops commercial fusion power for generation of clean energy.

“Oxy Low Carbon Venture’s desire for emissions-free energy makes this the perfect moment to explore the deployment of our commercial-ready power management products, while the growing demand for large-scale power generation can be served by our future fusion offerings,” says Michl Binderbauer, CEO of TAE.

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The Houston energy transition ecosystem is primed for collaborative partnerships – but here's what to keep in mind. Photo courtesy of Digital Wildcatters

Addressing the need for collaboration in Houston's energy transition

Editor's note

When it comes to advancing the energy transition in Houston and beyond, experts seem to agree that collaborations between all major stakeholders is extremely important.

In fact, it was so important that it was the first panel of the second day of FUZE, an energy-focused conference put on by Digital Wildcatters. EnergyCapital HTX and InnovationMap were the event's media partners, and I, as editor of these news outlets, moderated the panel about collaborations.

I wanted to take a second to reflect on the conversation I had with the panelists earlier this week, as I believe their input and expertise — from corporate and nonprofit to startup and investing — was extremely valuable to the greater energy transition community.

Here were my three takeaways from the panel, titled "Collaborative Partnerships: Leveraging synergy in the energy sector."

Early-stage tech startups need bridges to cross their valleys.

The energy transition is a long game — and an expensive one, as Jane Stricker, executive director of the Houston Energy Transition Initiative, explains on the panel. And, just like most startups, the path to commercialization and profitability is long — and definitely not promised.

"When you look at innovation and startups, the multiple valleys of death a startup will go through on their journey, we have to find more ways to bridge those valleys and get more technology to get up that mountain and to a place where it can be scaled," she says.

She explains that corporations aren't always good at innovating, but they are impactful about rolling out de-risked technology at a global scale. But the technology has to get to that point first, so it takes a much earlier intervention for corporates — or another entity, like incubators and accelerators — to help in that developmental process.

"In Houston we have the potential to build out that ecosystem — we already have a lot of pieces in place, so it's about connecting the dots," Stricker says. "It's only by all of the different parts of the ecosystem understanding what each other does and what unique role they play in the process that we can really leverage the strengths of each of them to help create those partnerships and opportunities."

As Amy Henry, CEO of EUNIKE Ventures explains, corporates have their own challenges.

"Energy companies themselves have their own valley of death, and from where they are sitting, that's why they need to collaborate," she says on the panel. "And now we're talking about an unprecedented rate of getting technology commercialized."

EUNIKE works as a go between for corporates — almost as an expansion for them, Henry explains, and they are facing a challenging time too.

"Energy companies are just not early adopters of technology," she says. "But they are also going through their own transformation. At the same time, you've had this huge knowledge leakage in terms of all the workforce reduction."

Startups and corporates speak a different language.

Moji Karimi has had several partnerships with corporations with his biotech startup Cemvita Factory, including a recent offtake agreement with United. For Karimi, it's about learning about your corporate partner.

"In partnerships, especially for startups, you need to understand what is the language of love for the company at time," he says on the panel. "Is it growth, is it perception and PR, is it deployment of capital, or is there a specific bottleneck that we can help remove."

For HETI, Striker says they hope to act as a translator between the two parties.

"How do we enable more connectivity between the companies that have a technology that may be of interest to the larger companies looking for a solution?" Striker explains of HETI's mission. "And how do we make sure industry is communicating opening and broadly?"

Now is the time for action.

For Karimi, the solution is simple: More action is needed.

"Generally, we just need to talk less and do more," he says of what he wants to see from corporates, adding that more checks need to be written.

Based on his own experience, Karimi says some corporates are better to work with than others. He says he prefers working with the companies that don't try to mix in their startup pilots with the "bread and butter" of the business.

"Everyone has so much on their plate," he says, giving the example of Oxy Low Carbon Ventures being an offshoot of Oxy's main business.

Karimi says corporates should think of their startup pilots as an opportunity to try something new and different — something they'd never be able to test internally.

David Maher, business development director of Americas at Linde, says now that there's been regulatory framework, Linde knows what to invest in. The company has a particular interest in hydrogen.

"Another big piece of it is scale," Maher says of what Linde thinks about when considering innovative partnerships. "What's great about Houston is we have density and scale already."

Occidental says its all-cash acquisition of Canada-based Carbon Engineering is set to close by the end of 2023. Photo via carbonengineering.com

Oxy acquires carbon capture co. in $1.1B deal

betting on dac

In yet another bet on direct carbon capture (DAC), Houston-based Occidental has agreed to purchase a DAC technology company for $1.1 billion.

Occidental says its all-cash acquisition of Canada-based Carbon Engineering is set to close by the end of 2023. Carbon Engineering was founded in 2009.

Under the deal, Carbon Engineering would become a wholly owned subsidiary of Oxy Low Carbon Ventures, the investment arm of Occidental. Carbon Engineering employees will work with teams at Occidental and its low-carbon subsidiary, 1PointFive, on DAC technology. The company’s R&D and innovation units will remain in Squamish, British Columbia.

Occidental has been a key DAC partner of Carbon Engineering since 2019.

“We look forward to continuing our collaboration with the Carbon Engineering team, which has been a leader in pioneering and advancing DAC technology,” Vicki Hollub, president and CEO of Occidental, says in an August 15 news release. “Together, Occidental and Carbon Engineering can accelerate plans to globally deploy DAC technology at a climate-relevant scale and make DAC the preferred solution for businesses seeking to remove their hard-to-abate emissions.”

Billionaire Warren Buffett’s Berkshire Hathaway conglomerate owns about one-fourth of the shares of publicly traded Occidental.

In conjunction with Carbon Engineering, Occidental’s 1PointFive is building Stratos, the world’s largest DAC plant. The Ector County facility, scheduled to begin operating in mid-2025, is projected to extract up to 500,000 metric tons of carbon dioxide from the air each year. It’s anticipated that Stratos will employ more than 1,000 people during construction and up to 75 people once the plant is up and running.

Occidental and Carbon Engineering are adapting Stratos’ engineering and design features for a DAC plant to be built on a site at South Texas’ King Ranch. The South Texas DAC Hub, which is on track to create about 2,500 jobs, recently received a roughly $600 million grant from the U.S. Department of Energy (DOE).

1PointFive plans to open as many as 135 DAC facilities around the world by 2035, with the capacity to capture 100 million metric tons of carbon dioxide (CO2) per year.

DAC technology pulls carbon dioxide emissions from the atmosphere at any location and permanently stores the CO2 or uses it for other purposes. By contrast, carbon capture sucks carbon dioxide from the air near where emissions are generated and then permanently stores the CO2 or uses it for other purposes.

A DAC system vacuums about 50 percent to 60 percent of the carbon dioxide from the air that passes through the system’s fans.

DAC “is shaping up to be a key component of meeting net-zero emissions goals in the United States,” according to the National Renewable Energy Laboratory.

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Climatetech funding: New York investment firm to donate part of proceeds to Greentown Labs

donations incoming

Effective immediately, Greentown Labs, which has locations in Houston and Somerville, Massachusetts, is benefitting from funds raised by an investment group.

Greentown Labs, a nonprofit climatetech incubator, announced its partnership with New York-based Prithvi Ventures, a firm that specializes in early-stage climatetech. The unique partnership includes Prithvi Ventures donating "a percentage of proceeds received from its Fund 1 and Fund 2 to Greentown on a quarterly basis, in perpetuity," per Greentown's news release. The exact percentage was not disclosed.

“There’s an understanding in sports that the best teams always take responsibility and accountability for their own and look out for each other—that the members of the team are a reflection of the franchise,” says Kunal Sethi, founder and general partner at Prithvi Ventures. “I have always believed the same to be true in venture, too.

"Founders should know their supporters, team, and cap tables inside and out. It matters who you surround yourself with and Greentown Labs is always the first name that comes up for me," he continues. "Every founder in climatetech should work with them or they’re missing out on so much.”

Prithvi Ventures already has a handful Greentown member companies in its investment portfolio, including Carbon Upcycling, Mars Materials, Nth Cycle, and Rheom Materials. The firm has invested in 30 companies total, and aims to lead rounds, preferring to be the first large check for the startups it invests in.

“We are delighted to deepen our relationship with Prithvi Ventures and are grateful for their ongoing support,” Aisling Carlson, senior vice president of partnerships at Greentown Labs, says in the statement. “Through this new partnership, Prithvi Ventures and its limited partners are setting an example for how the venture community can more directly support the incubators and accelerators working to catalyze climatetech innovation and entrepreneurship.”

New rule to require railroads in Texas, beyond to provide hazardous cargo details upon derailment

in case of emergency

A new federal rule finalized Monday aims to ensure first responders can find out what hazardous chemicals are on a train almost immediately after a derailment so they can respond appropriately. Texas, a major hub for chemical development, will be affected by the ruling.

Too often in past disasters like last year's fiery Norfolk Southern derailment in East Palestine, Ohio, firefighters risked their lives trying to extinguish a blaze without knowing the right way to respond. The local fire chief in charge of the response said it took him 45 minutes to learn exactly what was in the 11 burning tank cars on the train, but some firefighters from neighboring departments that came to help said they didn't know what they were dealing with until two hours after the February 3, 2023, crash.

First responders need to know exactly which hazardous materials are on a train so they can look it up in the government's official guidebook and make sure they have the right protective gear and firefighting tools, said Tristan Brown, deputy administrator of the Pipelines and Hazardous Materials Safety Administration agency that proposed the rule.

Knowing what chemical is involved and how much of it is aboard also affects how big of an evacuation zone might be required to protect the public.

“There are so many different types of hazardous materials being transported across the country on any given day — one in 10 goods that move across the United States — and each one, poses unique risks and hazards, certainly to the folks who are running towards a fire,” Brown said. “But certainly as well for anybody who may be living or working in that vicinity.”

The rule was published just one day ahead of the National Transportation Safety Board's final hearing on the East Palestine derailment, where they will discuss exactly what caused that crash and recommend steps to prevent similar disasters.

Train crews have long carried lists of their cargo in the cabs of their locomotives, but in the middle of the chaos after a derailment those engineers and conductors, who might have moved their locomotives miles down the track, can't always be found right away.

That's part of why the largest freight railroads developed an app called AskRail roughly a decade ago that enables firefighters to quickly look up the details of what each train carries. But not every firefighter had the app, and cell phones don't always have a signal strong enough to work in a disaster.

Regulators want the railroads to continue expanding access to that app, including to 911 centers, so information reaches first responders sooner. The railroads have been expanding access over the past year. The Association of American Railroads trade group estimates some 2.3 million first responders now have access to that information as a result of the effort to expand into dispatch centers.

The six biggest railroads also make train cargo information immediately available through the chemical industry's hazardous materials hotlines in the U.S. and Canada known as the CHEMTREC and CANUTEC, emergency call centers.

Norfolk Southern said that in addition to AskRail it is working with a different program called RapidSOS that will allow the railroad to directly send information about its trains to first responders after a derailment — instead of forcing them to look up the details in AskRail. The railroad said its work fits well with the new rule.

But the new federal rule also applies to the hundreds of smaller railroads that aren't involved in AskRail. Even railroads that only have one or two employees now must have a plan to get the crucial details of their cargo to the local fire department quickly, even if its as simple as having the fire chief's cell phone number at the ready. Railroads also must test their plan at least once a year.

“In a hazmat incident, firefighters and first responders arriving on scene need to know what kind of hazardous materials are present so they can protect themselves and their communities,” U.S. Transportation Secretary Pete Buttigieg said.

It's not clear how this rule might have changed the outcome in East Palestine, but more information could have helped responding firefighters.

The derailment prompted a nationwide reckoning over railroad safety and prompted Congress to propose changes and regulators like Buttigieg to urge railroads to do more to prevent derailments.

The Federal Railroad Administration has issued various advisories about different aspects of railroad operations, but the reforms in Congress have stalled because Republicans wanted to wait for the final NTSB report and regulators have had only limited success making changes.

From virtual to reality: This Houston extended reality CEO weighs in on energy transition applications

Q&A

Founded in 2023, MadXR is a Houston-based Extended Reality startup. The innovative company specializes in safety training experiences for the energy sector and beyond. From pre-built virtual reality training modules to custom developed, end-to-end XR solutions, MadXR creates interactive, lifelike virtual reality and augmented reality experiences that allow trainees to practice safety procedures in a controlled environment.

Houston Energy Transition Initiative recently connected with Miranda Palmisano, CEO of MadXR, to discuss the applications and benefits of XR—and how it can help energy companies reduce HSE risk and carbon intensity like never before.

HETI: You were at Chevron for nearly 10 years before MadXR. How did your experiences at Chevron shape your approach to starting and running your own company?

Miranda Palmisano: Prior to founding MadXR, I held many different roles at Chevron across upstream and downstream. As the Connected Worker Product Manager, I drove digital acceleration for our global field and maintenance teams in refineries, terminals, and manufacturing sites, elevating efficiency and safety. During that time, I began exploring the value case of VR across Chevron.

I formed the Extended Reality Team and shortly became the Extended Reality Product Manager. Our team began using VR to conduct safety training within a virtual environment. It allowed us to train Chevron’s workforce safer and more efficiently by providing hands-on experience without the risk of real-world errors.

HETI: What inspired you to start your own company?

MP: Extended reality is an exciting new technology, and I quickly discovered the growing need for flexible, cost-effective XR content development in relation to life-saving-action training, such as confined-space entry, lockout/tagout procedures, and working from heights. I believe that affordable and high-quality XR experiences should be accessible to all companies, regardless of budget. That’s why MadXR has transparent pricing options that range from pre-built VR training modules to turnkey teams—and we empower our customers to take full ownership of their content and assets.

HETI: How has being based in Houston helped MadXR?

MP: The network in Houston is unmatched. In the energy capital of the world, it’s much easier to access the companies we’re targeting and hire the talent we need to grow. Innovation hubs like Houston’s Ion District have given us the resources and opportunities to connect with a vast number of forward-thinking businesses.

HETI: Do you believe XR will be instrumental in helping companies reach low carbon or net zero goals?

MP: XR is poised to revolutionize the energy industry, offering unprecedented opportunities for efficiency, engagement, and environmental sustainability. Imagine donning a headset and virtually navigating a facility halfway across the globe in real-time, or preparing your entire team with comprehensive virtual training before they physically enter a site. These scenarios highlight XR’s potential to enhance operational efficiency and employee engagement significantly. Beyond the immediate benefits, XR also plays a crucial role in reducing carbon emissions by eliminating the need for unnecessary travel. This technology isn’t just about improving current processes; it’s about reimagining the future of energy industry operations in a more sustainable, efficient, and engaging way.

HETI: MadXR will be celebrating its first anniversary in April. Can you tell us more about your vision for the future and what you’re focused on in 2024?

MP: In 2023, we were focused on ramping up and generating awareness. This year, we’re dedicated to expanding our reach and impact. We plan to incorporate AI into our learning modules and XR development to make them even more informational and interactive.

While our primary focus is on energy, we’re exploring how we can extend XR training to other industries, including automotive, healthcare, and pharmaceuticals.

———

This article originally ran on the Greater Houston Partnership's Houston Energy Transition Initiative blog. HETI exists to support Houston's future as an energy leader. For more information about the Houston Energy Transition Initiative, EnergyCapitalHTX's presenting sponsor, visit htxenergytransition.org.

To learn more about MadXR’s mission and XR training modules, visit MadXR.

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