An inside glimpse of a major direct air capture sale
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The Canadian founder of a Canada-based direct air capture startup would have preferred to sell to a company there over the U.S. oil producer who ultimately bought it: Texas-based Occidental Petroleum.
Why it matters: The insight, revealed to Axios in an interview that published this week as part of a new episode in the "Shocked" podcast, provides a glimpse into the sometimes-surprising factors at play in major deals.
Catch up quick: Occidental bought Carbon Engineering, a direct air capture firm, in 2023 for $1.1 billion.
- With 4% ownership in Carbon Engineering, founder and climate scientist David Keith earned about $72 million, the New York Times reported in a profile of Keith last year.
- He told the Times he was "uncomfortable" with the sale to an oil company but that he would donate most of it, possibly to conservation causes.
What they're saying: "I did think about the fact that we were selling it to the Americans and if there'd been a Canadian option that was close, I would've fought hard for it," Keith, now a University of Chicago professor, said in the interview.
- His small ownership stake meant he wouldn't have had huge sway regardless, but added: "Personally, I would've been happy to take less money if there was a Canadian option."
The intrigue: He said he would have preferred keeping the sale in his country, first as a "proud Canadian," but also because of the risk it could have been held up by Canadian laws that allow for the country to block foreign companies' takeovers.
What's next: Occidental is on track to begin capturing carbon dioxide on the world's largest direct air capture facility — using Carbon Engineering's technology — later this year.
Editor's note: This article was written partly based on content from the "Shocked" podcast, which was created by a team including experts at the University of Chicago's Institute for Climate and Sustainable Growth and producers at Magnificent Noise. Amy is also the institute's inaugural journalism fellow.
