BHP stakes $US6 million in clean energy company

BHP has invested $US6 million ($8.47 million) in Canadian clean energy company Carbon Engineering. The company develops direct air capture (DAC) technology that helps to reduce carbon dioxide emissions in the atmosphere.

Carbon Engineering’s DAC system uses a closed loop that captures carbon dioxide in a purified form for storage or use in other ways, such as conversion into liquid fuels with ultra-low carbon intensity.

BHP is investing in carbon capture, utilisation and storage (CCUS) technologies as part of a company-wide effort to reduce greenhouse gas emissions, which are a major contributor to climate change.

BHP vice president, sustainability and climate change, Fiona Wild, said investment in emerging technologies had the potential to lead to “material reductions” in such emissions.

“As the Intergovernmental Panel on Climate Change (IPCC) stated in late 2018, if we are to avoid the worst effects of climate change, technologies that capture and remove CO2 will be required,” she said.

“Direct air capture offers flexibility and potential, and could play a vital role in reducing future global emissions. We hope that this investment can accelerate the development and adoption of this technology.”

Carbon Engineering chief executive officer Steve Oldham added that BHP’s global reach would make them an “ideal partner” to accelerate the company’s product commercialisation.

BHP joins a list of investors in privately owned Carbon Engineering that include Chevron Technology Ventures, Oxy Low Carbon Ventures and Bill Gates.

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