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BFD Expert Voices - Climate Deals

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Oxy Low Carbon Ventures on Tuesday morning announced an agreement with fusion energy developer TAE Technologies to explore powering a carbon removal plant with the clean energy tech. 

Why it matters: The deal would bring together two of the most ambitious but, if proven, most transformative technologies in climate tech.

The big picture: Oxy Low Carbon Ventures plans to work with TAE to explore whether fusion energy can provide the vast power needed for direct air capture.

Flashback: DAC removes heat-trapping carbon from the ambient air, helping slow and maybe one day reverse climate change. 

Oxy, the low-carbon arm of oil giant Occidental Petroleum, last summer acquired DAC developer Carbon Engineering for $1.1 billion.

Rivals such as Iceland's Climeworks have shown that the technology can work in small pilots, but the power hungry technology has yet to be proven at scale.

The latest: Oxy and TAE's memorandum of understanding is centered on commercializing DAC by powering the plants with near-limitless, emissions-free fusion.

Reality check: Fusion energy remains years or even decades away. 

State of play: TAE Technologies, based in Foothill Ranch, California, is among the most well-funded companies pursuing the moonshot tech. 

The key milestone is "net output," or producing more electricity than was needed to spark a reaction. TAE says it anticipates achieving net output as soon as 2026 — earlier than most others in the space.

Yes, but: A commercial plant would only follow years later.

💭 Alan's thought bubble: If you're alternating between intense skepticism and intrigue, we are, too. If fusion works, it can solve one of the biggest challenges facing DAC. 

It's inherently compelling. But the key word for now: maybe.

Oxy, TAE sign deal for fusion-powered carbon removal

The agreement brings together two moonshot technologies.

Illustration of two hands shaking, with one person's jacket golden cufflinks spelling CO2.

Carbon emissions

<a class="gtmContentClick" data-vars-link-text="Oxy Low Carbon Ventures" data-vars-click-url="https://www.axios.com/pro/climate-deals/2023/08/15/occidental-direct-air-capture-carbon-engineering-1-billion" data-vars-content-id="c190a7c8-9a48-4add-82e4-3cac0cdef529" data-vars-headline="Oxy, TAE sign deal for fusion-powered carbon removal" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2023/08/15/occidental-direct-air-capture-carbon-engineering-1-billion" target="_self">Oxy Low Carbon Ventures</a> on Tuesday morning <a class="gtmContentClick" data-vars-link-text="announced" data-vars-click-url="https://www.globenewswire.com/news-release/2024/06/11/2896750/0/en/Occidental-Low-Carbon-Ventures-and-TAE-Technologies-Explore-Fusion-Energy-for-Direct-Air-Capture-Facilities.html" data-vars-content-id="c190a7c8-9a48-4add-82e4-3cac0cdef529" data-vars-headline="Oxy, TAE sign deal for fusion-powered carbon removal" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.globenewswire.com/news-release/2024/06/11/2896750/0/en/Occidental-Low-Carbon-Ventures-and-TAE-Technologies-Explore-Fusion-Energy-for-Direct-Air-Capture-Facilities.html" target="_blank">announced</a> an agreement with fusion energy developer <a class="gtmContentClick" data-vars-link-text="TAE Technologies" data-vars-click-url="https://www.axios.com/pro/climate-deals/2023/01/24/tae-technologies-spinoff-tae-power-systems" data-vars-content-id="c190a7c8-9a48-4add-82e4-3cac0cdef529" data-vars-headline="Oxy, TAE sign deal for fusion-powered carbon removal" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/pro/climate-deals/2023/01/24/tae-technologies-spinoff-tae-power-systems" target="_self">TAE Technologies</a> to explore powering a carbon removal plant with the clean energy tech. Why it matters: The deal would bring together two of the most ambitious but, if proven, most transformative technologies in climate tech.

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Oxy, TAE sign deal for fusion-powered carbon removal

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