Australian mining company BHP has invested $7.9 million (US$6 million) in Carbon Engineering Ltd (CE), a Squamish, British Columbia-based emissions reduction company.
The investment comes two months after CE secured undisclosed financing from Occidental Petroleum Corp and Chevron Corp.
The company told Reuters it expects to raise US$60 million by the end of Q1 2019.
CE makes technologies that remove carbon dioxide from the air and convert it into clean transportation fuels. It emerged in 2009 from research conducted at the University of Calgary and Carnegie Mellon University.
Led by CEO Steve Oldham, CE will use the funds raised for its global commercialization strategy.
BHP invests US$6m in emissions reduction company, Carbon Engineering
04 Mar 2019
We are happy to share BHP’s news release regarding their investment in Carbon Engineering:
BHP today announced a US$6m equity investment in Carbon Engineering Ltd (CE), a Canadian-based company leading the development of Direct Air Capture, an innovative technology which has the potential to deliver large-scale negative emissions by removing carbon dioxide from the atmosphere. The investment will see BHP obtain a share of the company.
BHP’s Vice President, Sustainability and Climate Change, Fiona Wild said: “BHP is committed to accelerating the global response to climate change by investing in emerging technologies that have the potential to lead to material reductions in greenhouse gas emissions.”
“As the Intergovernmental Panel on Climate Change (IPCC) stated in late 2018, if we are to avoid the worst effects of climate change, technologies that capture and remove CO2 will be required. Direct Air Capture offers flexibility and potential, and could play a vital role in reducing future global emissions. We hope that this investment can accelerate the development and adoption of this technology.”
CE’s CEO, Steve Oldham, welcomed BHP’s investment. “At CE we’re focused on commercialising technologies that can play a critical role in addressing climate change. As we work to deploy our technologies at large scale around the world, we’re thrilled to welcome investment from industry-leading companies like BHP.”
“BHP’s global reach and experience in executing complex projects, as well as their strategic commitment to reducing emissions, make them an ideal partner to help us accelerate the commercialisation and use of CE’s technologies. We’re looking forward to working with BHP and our other partners as we progress the development of DAC and AIR TO FUELS™ facilities, and ultimately achieve our goal of delivering affordable, carbon-neutral fuels and significant emissions reductions around the globe,” said Mr Oldham.
“We know that investing in emerging technologies to reduce emissions is just one part of addressing climate change. At BHP, we also set greenhouse gas emissions reduction targets for our operations, we build the resilience of our operations and communities to the physical impacts of climate change and we work in partnership with our resource sector peers to improve sectoral performance,” said Dr Wild.
Dr Wild said the investment in CE complements BHP’s existing efforts to accelerate the development of carbon capture, utilization and storage (CCUS) at point sources of CO2 emissions, such as in steel making and power generation. “We have achieved progress in CCUS through partnerships, including with the International CCS Knowledge Centre in Canada and with Peking University. We also support REDD+, the UN program for reducing atmospheric emissions from deforestation and forest degradation.”
“Government support for technologies that capture carbon has been important. However mobilising private capital and supporting market mechanisms to finance technologies that address global emissions will be critical if we are to build a net-zero emissions economy. This investment is a good example of the role that the private sector can play in bringing such technologies to market,” said Dr Wild.
About Direct Air Capture technology
DAC is a technology that captures CO2 from atmospheric air, and provides it in a purified form for use or storage. Carbon Engineering’s DAC technology does this in a closed loop where the only major inputs are water and energy, and the output is a stream of pure, compressed CO2. This captured, compressed CO2 then offers a range of opportunities to create products and environmental benefits, including production of clean-burning liquid fuels with ultra-low carbon intensity.
About Carbon Engineering
Founded in 2009, CE is a Canadian-based clean energy company leading the commercialization of groundbreaking technology that captures CO2 directly from the atmosphere, and a second technology that synthesizes it into clean, affordable transportation fuels. From a pilot plant in Squamish, B.C., CE has been removing CO2 from the atmosphere since 2015 and converting it into fuels since 2017.
CE is privately owned and is funded by investment or commitments from private investors and government agencies. CE’s private investors include Bill Gates, Murray Edwards, Oxy Low Carbon Ventures, LLC, Chevron Technology Ventures, and BHP. To date, CE has led projects funded by Sustainable Development Technologies Canada, British Columbia Innovative Clean Energy Fund, Climate Change and Emissions Management Corporation, Industrial Research Assistantship Program, and the US Department of Energy.