The surprising twist in Occidental's $1.1B purchase of Carbon Engineering

Axios | September 16, 2025
By Amy Harder

Illustration: Allie Carl/Axios

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, 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.