Caterpillar Acquires CarbonPoint Solutions

Rhea-AI Summary

Caterpillar Inc. (NYSE: CAT) has acquired Enhanced Energy Group, Inc., operating as CarbonPoint Solutions, a carbon capture technology company based in Rhode Island. This strategic acquisition aims to integrate CarbonPoint's patented technologies with Caterpillar's existing oil and gas solutions, aligning with the company's commitment to reducing greenhouse gas emissions. Caterpillar's investment in new technologies underscores its dedication to sustainability and aiding customers in achieving climate-related goals.

Positive

• Acquisition of CarbonPoint Solutions enhances Caterpillar's technology offerings in carbon capture.
• Integration of patented carbon capture technology supports customers' climate objectives.
• Caterpillar strengthens its commitment to sustainability and reducing greenhouse gas emissions.

Negative

• None.

DEERFIELD, Ill., Sept. 10, 2021 /PRNewswire/ -- Caterpillar Inc. (NYSE:CAT) has acquired Enhanced Energy Group, Inc. operating as "CarbonPoint Solutions," a U.S.-based carbon capture technology company. Headquartered in Rhode Island, CarbonPoint Solutions provides technology to concentrate and capture CO₂ for utilization or sequestration.

Carbon capture systems using CarbonPoint Solutions' patented processes can be applied to engines and turbines at oil and gas sites, distributed power and industrial plants and waste-to-energy sites.

"Combining CarbonPoint Solutions' patented technology with Caterpillar Oil & Gas solutions enables us to further reduce greenhouse gas emissions while helping our customers meet their climate-related objectives," said Rod Shurman, vice president of Caterpillar's Oil & Gas and Marine Division.

"We are extremely pleased to join Caterpillar and look forward to rapid deployment of the Semi-Closed Cycle and carbon capture for Cat engines and Solar gas turbines," said Paul Dunn, president and founder of CarbonPoint Solutions.

Caterpillar is committed to contributing to a reduced-carbon future. We demonstrate this in many ways including our continued investment in new products, technologies and services to help our customers achieve their climate-related objectives as they build a better, more sustainable world.

About Caterpillar 

With 2020 sales and revenues of $41.7 billion, Caterpillar Inc. is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Since 1925, we've been driving sustainable progress and helping customers build a better world through innovative products and services. Throughout the product life cycle, we offer services built on cutting-edge technology and decades of product expertise. These products and services, backed by our global dealer network, provide exceptional value to help our customers succeed. We do business on every continent, principally operating through three primary segments – Construction Industries, Resource Industries, and Energy & Transportation – and providing financing and related services through our Financial Products segment. Visit us at caterpillar.com or join the conversation on our social media channels at caterpillar.com/social-media.

Forward-Looking Statements

Certain statements in this financial review relate to future events and expectations and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "forecast," "target," "guide," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance and speak only as of the date they are made, and we do not undertake to update our forward-looking statements.

Caterpillar's actual results may differ materially from those described or implied in our forward-looking statements based on a number of factors, including, but not limited to: (i) global and regional economic conditions and economic conditions in the industries we serve; (ii) commodity price changes, material price increases, fluctuations in demand for our products or significant shortages of material; (iii) government monetary or fiscal policies; (iv) political and economic risks, commercial instability and events beyond our control in the countries in which we operate; (v) international trade policies and their impact on demand for our products and our competitive position, including the imposition of new tariffs or changes in existing tariff rates; (vi) our ability to develop, produce and market quality products that meet our customers' needs; (vii) the impact of the highly competitive environment in which we operate on our sales and pricing; (viii) information technology security threats and computer crime; (ix) inventory management decisions and sourcing practices of our dealers and our OEM customers; (x) a failure to realize, or a delay in realizing, all of the anticipated benefits of our acquisitions, joint ventures or divestitures; (xi) union disputes or other employee relations issues; (xii) adverse effects of unexpected events; (xiii) disruptions or volatility in global financial markets limiting our sources of liquidity or the liquidity of our customers, dealers and suppliers; (xiv) failure to maintain our credit ratings and potential resulting increases to our cost of borrowing and adverse effects on our cost of funds, liquidity, competitive position and access to capital markets; (xv) our Financial Products segment's risks associated with the financial services industry; (xvi) changes in interest rates or market liquidity conditions; (xvii) an increase in delinquencies, repossessions or net losses of Cat Financial's customers; (xviii) currency fluctuations; (xix) our or Cat Financial's compliance with financial and other restrictive covenants in debt agreements; (xx) increased pension plan funding obligations; (xxi) alleged or actual violations of trade or anti-corruption laws and regulations; (xxii) additional tax expense or exposure, including the impact of U.S. tax reform; (xxiii) significant legal proceedings, claims, lawsuits or government investigations; (xxiv) new regulations or changes in financial services regulations; (xxv) compliance with environmental laws and regulations; (xxvi) the duration and geographic spread of, business disruptions caused by, and the overall global economic impact of, the COVID-19 pandemic; and (xxvii) other factors described in more detail in Caterpillar's Forms 10-Q, 10-K and other filings with the Securities and Exchange Commission.

A reconciliation of non-GAAP financial information can be found in our press release describing second-quarter 2021 financial results which is available on our website at www.caterpillar.com/earnings.

 

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SOURCE Caterpillar Inc.

FAQ

What is the significance of Caterpillar's acquisition of CarbonPoint Solutions?

The acquisition is significant as it enhances Caterpillar's capabilities in carbon capture technology, allowing for better emission reduction solutions for its customers.

When was the acquisition of CarbonPoint Solutions announced?

Caterpillar announced the acquisition of CarbonPoint Solutions on September 10, 2021.

What technology does CarbonPoint Solutions provide?

CarbonPoint Solutions provides patented technology for concentrating and capturing CO2 for utilization or sequestration.

How does the acquisition impact Caterpillar's sustainability goals?

The acquisition supports Caterpillar's sustainability goals by enabling further reductions in greenhouse gas emissions through enhanced technology.