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Occidental, Anglo American anchor dual $1.5B deals

Anglo American nuGen facility in South Africa. Photo: Felix Dlangamandla/Daily Maverick/Gallo Images via Getty Images

This morning featured two more chunky merger announcements in the climate tech space, each valued at $1.5 billion.

Why it matters: The market volatility has impacted a lot of industries, but climate tech is weathering the economic storm and is even able to pull off something unthinkable in other sectors: the announcement of two SPAC deals in as many days.

Of note: This morning's dual announcements come one day after nickel producer Lifezone unveiled its own $1 billion SPAC merger, suggesting the trend is playing out in climate tech — or at least commodities.

Details: Deal No. 1 — Net Power, backed by Oxy and other major players in oil and gas, announced a SPAC merger that will list the company on the New York Stock Exchange.

  • Net Power, based in Durham, N.C., is merging with Rice Acquisition Corp. II at an implied enterprise value of about $1.5 billion.
  • Oil and gas billionaires the Rice family invested $100 million. Occidental, which has invested aggressively in carbon-capture technologies, also committed $100 million via PIPE.

Meanwhile: Deal No. 2 — First Mode, which built a hydrogen fuel cell system for enormous mining haul trucks, is being acquired by mining giant Anglo American.

  • Anglo American, a mining company based in London, is combining First Mode with Anglo's clean energy division, nuGen.
  • The deal includes a $200 million equity investment from Anglo. It values the combined business at $1.5 billion.
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