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Occidental BHE petroleum

On June 4 Occidental Petroleum and BHE Renewables announced their joint venture to extract high-purity lithium from Berkshire’s geothermal facility in California. Together, they plan to revolutionize commercial lithium production by installing TerraLithium’s Direct Lithium Extraction (DLE) technology. This partnership marks a significant step in the advancement of sustainable energy solutions.

We shall deep dive into the JV details and explore the technology in the next paragraphs:

Oxy-BHE Synergy Leading the Future of Sustainable Lithium Extraction

 The collaboration aims to leverage the strengths of both companies. Occidental will bring its expertise in chemical engineering and large-scale operations while BHE Renewables will contribute its knowledge of renewable energy and environmental sustainability.

Alicia Knapp, President and CEO of BHE Renewables has further assured that,

“This joint venture with TerraLithium represents a significant advancement in BHE Renewables’ commitment to pursuing commercial lithium production that is environmentally safe, commercially viable, and leads to good outcomes for the Imperial Valley community.”

She further envisions making Imperial Valley a global leader in lithium production.

After successfully demonstrating the technology, BHE Renewables will construct, own, and operate commercial lithium production facilities in California’s Imperial Valley. The joint venture also plans to license the technology and set up commercial lithium production facilities outside the Imperial Valley.

Oxy’s TerraLithium Acquisition Sparks Lithium Revolution

The demand for EVs and consumer electronics propels the lithium market. It is projected to soar from $22.2 billion to $89.9 billion by 2030. Conventional lithium production methods, like evaporation ponds, pose significant environmental concerns. Moreover, production facilities are heavily concentrated in Australia, Chile, and China.

From the company’s climate report, we discovered that Oxy’s acquisition of TerraLithium in 2022, now a wholly owned subsidiary, is a game-changer.

formed through a partnership with All-American Lithium in 2019, TerraLithium boasts patented technologies capable of cost-effectively extracting trace lithium from waste brines, ensuring ultra-high-purity lithium while minimizing environmental impacts. By acquiring the remaining interests, Oxy harnesses its expertise in chemical plant operations and brine management, promoting sustainable lithium production and securing strategic domestic lithium sources. TerraLithium’s demonstration plant in Brawley, California, near the Salton Sea, is slated to commence operations in 2024.

Jeff Alvarez, President and General Manager of TerraLithium being extremely optimistic about the merger, commented,

“Creating a secure, reliable, and domestic supply of high-purity lithium products to help meet growing global lithium demand is essential for the energy transition. The partnership with BHE Renewables will enable the joint venture to accelerate the development of our Direct Lithium Extraction and associated technologies and advance them toward commercial lithium production.”

TheTerraLithium Technology Advantage

TerraLithium owns patented Direct Lithium Extraction (DLE) technologies that transform any lithium-containing brine into a superior and responsibly sourced lithium supply. It leverages Oxy’s expertise in subsurface and chemical engineering, coupled with a track record in technology scale-up, pilot project development, and global commercialization.

This lithium extraction process promises higher efficiency and lower environmental impact than traditional methods. It minimizes water usage and reduces carbon emissions.

Notably, BHE operates 10 geothermal power plants in California, processing 50,000 gallons of lithium-rich brine every minute and generating 345 MW of clean energy.

This sustainable technology is set to meet the growing demand for lithium, crucial for EV batteries and renewable energy storage. Thus, aligning with both companies’ commitments to environmental stewardship to a low-carbon future.

Oxy’s Commitment to Net Zero goals

Oxy is committed to being part of the climate change solutions and developed the Net-Zero Strategy in alignment with the Paris Agreement. Being the largest oil and gas producers in the U.S., they have established key operations in the Permian and DJ basins and offshore in the Gulf of Mexico.

Furthermore, their subsidiary, Oxy Low Carbon Ventures, spearheads innovative technologies and business strategies that drive economic growth while curbing emissions. They are committed to global carbon management to propel a transition towards a lower-carbon future.

Additionally, it attracted significant new investments into low-carbon projects like DAC, carbon sequestration hubs, hydrogen, and notably, lithium.

Occidentalsource: Occidental

Warren Buffet’s Bold Lithium Bet

In 2021, Warren Buffett’s Berkshire Hathaway Inc. launched a groundbreaking plan to extract lithium from the superhot geothermal brines beneath California’s Salton Sea. It was believed to be a process that had never been explored before.

Here’s the image of it:

source: BHE

In 2022, they launched a demonstration project with this innovative technology. The strategic JV with Occidental is an extension of this plan. BHE Petroleum notes that if these demo projects succeed then construction of the first commercial plant could start as early as 2024. As already explained before it would essentially provide an environmentally responsible domestic source of lithium. Most significantly, all energy used in this lithium production process would be 100% renewable.

BHE Renewables is making strides in lithium production research in California’s Imperial Valley. Lithium, a crucial mineral for lithium-ion batteries used in cellphones, laptops, and EVs, dominates the brine processed at BHE Renewables’ geothermal facilities.

Will this JV Spark a Lithium Boom in the Future?

The demand for lithium is surging with the rise of EVs and renewable energy storage solutions. Technically the joint venture aims to capture a significant share of this expanding market. Furthermore, TerraLithium’s efficient and eco-friendly extraction process positions it as a competitive player in the industry.

Looking ahead, Occidental and BHE Renewables plan to scale up TerraLithium’s deployment. They are exploring opportunities to implement this technology at various sites. The goal is to enhance the supply chain for lithium, ensuring a stable and sustainable source for future energy needs.

Global oil giants are entering the electrification sector as the US and EU promote higher EV adoption and reduced fossil fuel dependency. Subsequently, Exxon Mobil aims to commence lithium production from sub-surface wells by 2027. Meanwhile, European oil leaders BP and Shell have directed investments toward EV charging stations as integral components of their energy transition strategies.

Last but not least, Richard Jackson, President, of US Onshore Resources and Carbon Management, Operations at Occidental has expressed himself that:

“By leveraging Occidental’s expertise in managing and processing brine in our oil and gas and chemicals businesses, combined with BHE Renewables’ deep knowledge in geothermal operations, we are uniquely positioned to advance a more sustainable form of lithium production. We look forward to working with BHE Renewables to demonstrate how DLE technology can produce a critical mineral that society needs to further net zero goals.”

All said and done, the partnership between Occidental and BHE Renewables signifies a major leap forward in lithium extraction technology and a transition to a greener future.

The post Occidental Petroleum and BHE Renewables JV to Revolutionize Lithium Extraction appeared first on Carbon Credits.

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Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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