New Era of Carbon Capture Technology: Part 3
(Feat. Warren Buffett, Japan’s Trading Giants, BlackRock, Google, Meta, Occidental Petroleum, Spiritus, Climate Tech, Sustainable Green Energy, Hydrogen, Carbon Credits, Environment Invest Portfolio)
Continuing from Part 2 …
130. There are just a few people who show up when something truly revolutionary happens.
131. One of those people is Warren Buffett.
132. Back in 2019, when Buffett bought shares in Occidental Petroleum, people were puzzled.
133. Occidental, founded in 1920 and headquartered in Houston, Texas, is an American company involved in oil, gas, and chemicals.
134. Buffett has kept increasing his stake in Occidental, now holding 34% ownership.
135. Occidental isn’t just an oil company; it’s also involved in chemicals.
136. They’re leading in carbon capture technology, specifically with Direct Air Capture (DAC), which pulls CO₂ directly from the air.
137. Their first DAC plant, called Stratos, is around 70% complete and is expected to start running by mid-2025.
138. This first plant is a pilot with the capacity to remove 500,000 tons of CO₂ from the atmosphere each year.
139. The project has drawn $550 million in investment, not just from Buffett, but also from BlackRock.
140. Occidental has already secured agreements to sell carbon credits from this facility to companies like AT&T, TD Bank, and Trafigura.
141. Another climate tech firm, Spiritus, announced plans to build the world’s largest DAC facility in Wyoming.
142. This facility, named Orchard One, is expected to capture 2 million tons of CO₂ annually and start operations in 2026.
143. Spiritus expects the DAC cost to be around $100 per ton of CO₂.
144. Companies like Alphabet (Google’s parent) and Meta are already lined up to buy the carbon credits from Orchard One.
145. In this environment, a new technology called COF-999 could be a game changer.
146. While Buffett’s bet is well-placed, some wonder if COF-999 could disrupt the DAC market, leaving his investment behind.
147. That’s both true and not true.
148. If COF-999 can capture carbon at a much lower cost, DAC facilities, which are more expensive to operate, could struggle to compete.
149. COF-999 could lead the capture side, while the CCUS market might shift toward storing and repurposing captured carbon.
150. Buffett isn’t just invested in Occidental; he’s also partnered with Japanese trading companies.
151. In recent years, Japan’s top five trading companies have started to shift their focus.
152. Mitsubishi, for example, is concentrating on carbon utilization technologies.
153. Mitsubishi is working on a project called Carbon Cure, which uses captured CO₂ in concrete production.
154. Cement, the main ingredient in concrete, produces significant CO₂ during production by heating limestone.
155. Carbon Cure technology captures CO₂ released during this process and injects it back into the cement.
156. When CO₂ is injected into the cement, it undergoes a chemical reaction that forms calcium crystals, effectively storing the CO₂ in the concrete.
157. This method not only recycles CO₂ but also strengthens the concrete.
158. Despite using captured CO₂, Carbon Cure doesn’t significantly increase production costs, so it’s rapidly moving toward commercialization.
159. Mitsubishi has created a concrete product called CO₂-SUICOM as a commercialized solution and is expanding its use in reinforced concrete.
160. Itochu, another major trading company, focuses on carbon transport and CCU (Carbon Capture and Utilization) technology.
161. CCU captures CO₂ and then either liquefies it for use or converts it into other valuable substances.
162. Itochu has launched a project in Indonesia that uses CO₂ to grow algae (like Euglena) for biofuel production.
163. Mitsui, Japan’s largest agricultural import company, is also moving into the CCS (Carbon Capture and Storage) business.
164. CCS captures CO₂ emissions and stores them underground.
165. This technology captures CO₂ from industrial sources and stores it in geological formations about 3,000 feet (800–1000 meters) underground, like depleted oil fields or saltwater reservoirs.
166. Currently, there are three recognized CCS methods.
167. One approach is injecting CO₂ into active oil fields, where the pressure helps extract remaining oil, and CO₂ is naturally stored in the empty space.
168. Another method involves storing CO₂ in deep saltwater reservoirs, which creates a carbonated effect similar to sparkling water or soda.
169. A third method seals CO₂ into empty oil and gas fields after extraction is complete.
170. Mitsui has invested in a U.K. CCS company called SG and plans to inject 6.7 million tons of CO₂ into depleted oil and gas fields between 2026 and 2030.
171. Mitsui also acquired a 49% stake in Australian forestry company New Forests, using forests to generate and sell carbon credits.
172. Mitsui aims to restore Australian forests to capture 5 million tons of CO₂ annually and sell carbon credits for 100 million tons by 2050.
173. In Indonesia, Mitsui is also setting up a CCUS value chain to transport CO₂ emissions from its factories to the depleted Rokan oil field.
174. Marubeni, another trading company, launched a CCS project in June 2022 to capture CO₂ from an Australian coal-fired power plant and transport it about 62 miles (100 kilometers) to an underground storage site nearly 1.2 miles (2 kilometers) deep. Storage is expected to begin in 2025.
175. Mitsubishi, Mitsui, and Sumitomo are working together on Indonesia’s Tangguh LNG project, which uses CCUS technology to cut CO₂ emissions.
176. This project involves capturing 25 million tons of CO₂ from gas fields and injecting it into the Vorwata gas field.
177. In the past, Japanese trading companies ventured into almost every market, from instant noodles to robotics.
178. Now they’re narrowing their focus, prioritizing resources, food, and CCUS technology.
179. Warren Buffett has a knack for spotting big, long-term investment opportunities before anyone else.
180. He might see these Japanese trading companies not just as import/export firms but as resources, food, and CCUS companies with huge potential.
Alphazen Insights
Every now and then, a new technology comes along that can shake things up. This latest breakthrough, published in Nature, just might be one of those game changers. It’s not just theory—this tech has been rigorously tested, so it’s got a real shot. When a game changer hits, some industries rise, and others scramble to keep up.
If carbon capture becomes easier, Japanese trading giants focusing on storage and reuse could see big opportunities. But keep an eye on companies like Mitsubishi—their profits might take a hit if the yen keeps getting stronger. Bottom line: don’t judge these companies as a pack; take a close look at each one. And hydrogen steel? That’s not just a way to dodge carbon taxes—it could shake up the entire steel market. Just remember, these trading companies play the long game, so keep that in mind if you’re thinking of investing.
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