Occidental Low Carbon Ventures and TAE Technologies Explore Fusion Energy for Direct Air Capture Facilities
On June 11, 2024, Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental (NYSE: OXY), announced a partnership with TAE Technologies to explore using TAE's fusion technology for emissions-free power and heat at Direct Air Capture (DAC) facilities. This agreement aims to complement Occidental's low-emission energy sources, including solar and NetPower, depending on location and future technological advancements. The collaboration offers TAE Technologies a platform to demonstrate the reliability, cost savings, and safety of their power management systems in commercial settings. OLCV's Vice President, Frank Koller, and TAE Technologies' CEO, Michl Binderbauer, emphasized the potential of fusion energy for sustainable, large-scale power generation.
- Partnership explores emissions-free fusion energy for DAC facilities.
- Potential for reliable, on-demand clean energy through fusion technology.
- TAE Technologies can demonstrate reliability, cost savings, and safety in a commercial setting.
- Fusion energy can complement existing low-emission sources like solar and NetPower.
- Enhances Occidental's portfolio of clean energy solutions.
- Uncertainty about the commercial viability of fusion technology.
- Dependency on successful future DAC technology development.
- Potential financial risk if fusion technology does not meet expectations.
Insights
The collaboration between Occidental's Low Carbon Ventures and TAE Technologies represents a significant step towards integrating cutting-edge fusion energy with direct air capture (DAC) technology. From an investment perspective, this initiative has the potential to place Occidental at the forefront of the clean energy transition. Fusion energy, while still in its developmental stage, promises a continuous and emissions-free energy supply, which could drastically reduce the operational carbon footprint of DAC facilities. This move aligns with the growing trend of energy companies diversifying their energy portfolios to include more sustainable options.
For investors, the critical point to consider is the timeline for commercialization of fusion energy. While the technology holds immense promise, significant scientific and engineering challenges remain. The cash burn rate and long-term funding required to bring fusion energy to a commercial scale could affect the company’s financials. Additionally, integrating such advanced technology comes with both operational risks and potential regulatory hurdles.
In the short term, this partnership may not significantly impact Occidental's stock price due to the speculative nature of fusion energy. However, in the long term, if successful, it could yield substantial cost savings and position the company as a leader in clean energy solutions, which might attract environmentally-conscious investors.
This agreement showcases Occidental's proactive stance in addressing climate change through innovative technology. Direct Air Capture (DAC) is critical in reducing atmospheric CO2 levels and coupling it with fusion energy could enhance its efficiency and sustainability. Fusion energy, unlike traditional renewable sources like solar and wind, provides a constant and stable energy supply, which is ideal for high-utilization settings like DAC facilities.
However, it is important to understand that fusion energy is not yet commercially viable. While TAE Technologies has made significant strides, there are still technical hurdles to overcome. The promise of emissions-free, continuous power is enticing, but investors should be aware of the current stage of fusion technology and manage expectations accordingly.
The partnership could set a precedent for future clean energy ventures, potentially attracting further investment into fusion development and accelerating advancements in this area. If TAE Technologies can demonstrate the reliability and cost efficiency of their fusion power solutions in a commercial setting, it could lead to broader adoption and significant advancements in climate technology.
HOUSTON, June 11, 2024 (GLOBE NEWSWIRE) -- Oxy Low Carbon Ventures (OLCV), a subsidiary of Occidental (NYSE: OXY), and TAE Technologies, a global leader in fusion energy development, today announced they have signed a memorandum of understanding to explore commercial opportunities that use TAE’s fusion technology to provide emissions-free power and heat for Direct Air Capture (DAC) facilities.
Fusion technology has the potential to deliver emissions-free, continuous and on-demand energy to complement Occidental’s existing zero or very-low emissions approach for DAC power and heat requirements. Occidental anticipates a variety of energy sources will be needed including solar, NetPower and potentially other forms of renewables depending on the location and future DAC technology development.
Through the agreement, TAE Technologies can explore demonstrating the reliability, cost savings and safety of their TAE Power Solutions power management systems in a high utilization commercial setting.
“Collaborating with TAE Technologies is an opportunity to build on Occidental’s portfolio of clean power sources that can provide our Direct Air Capture facilities with reliable, emissions-free energy,” said Frank Koller, Vice President, Power Development, Oxy Low Carbon Ventures. “Fusion is a promising technology that advances our efforts to explore sustainable energy sources as we progress with commercializing large scale Direct Air Capture as a critical climate solution.”
“Oxy Low Carbon Venture’s desire for emissions-free energy makes this the perfect moment to explore the deployment of our commercial-ready power management products, while the growing demand for large-scale power generation can be served by our future fusion offerings,” said Michl Binderbauer, CEO, TAE Technologies. “We are thrilled to work toward achieving these ambitious goals and demonstrate the benefits of our technologies to other high-power users.”
TAE’s fusion technology works by combining (or fusing) the light nuclei of elements such as hydrogen to produce energy. The energy release is managed by producing steam, which spins a turbine that drives an electric generator producing a reliable supply of clean energy or used as-is to provide clean heat.
About Oxy Low Carbon Ventures
Oxy Low Carbon Ventures, LLC (OLCV) is a subsidiary of Occidental (Oxy), an international energy company with assets primarily in the United States, the Middle East and North Africa. OLCV is focused on advancing cutting-edge, low-carbon technologies and business solutions that enhance Oxy’s business while reducing emissions. OLCV also invests in the development of low-carbon fuels and products, as well as sequestration services to support carbon capture projects globally. Visit Carbon Innovation on oxy.com for more information.
About TAE Technologies
TAE Technologies (pronounced T-A-E) was founded in 1998 to develop commercial fusion power with the cleanest environmental profile. The company's pioneering work represents the fastest, most practical, and economically competitive solution to bring abundant clean energy to the grid. With more than 2,300 patents filed globally and approximately 1,500 granted, more than
About TAE Power Solutions
TAE Power Solutions sees a future fueled by good, clean power: Electricity that is abundant, carbon-free, non-radioactive, and affordable for all, provided by commercial fusion energy. But the path to that perfect energy source demands innovations that can be implemented today. TAE Power Solutions’ revolutionary technologies were originally developed to bridge the gap between the amount of power needed to run a TAE fusion research reactor and what was supplied by the local power grid. With no sufficient solution available in the market, TAE created a first-of-its-kind energy storage and power delivery system. That innovation has unlocked a complete clean energy ecosystem, including more affordable and efficient storage, ultrafast charging capabilities, electric vehicle powertrains, peak shaving, buffering, and second life of batteries. TAE Power Solutions is now adapting the same technology invented to power TAE’s fusion technology for cars, homes, or businesses – accelerating the transition to an electrified world. For more information, click here.
Contacts
| Media | Investors | |
| Eric Moses 713-497-2017 eric_moses@oxy.com | R. Jordan Tanner 713-552-8811 investors@oxy.com | |
| press@tae.com | Jonathan Toretta jt@tae.com |
FAQ
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