16 August 2023

i(x) Net Zero PLC

("i(x) Net Zero" or the "Company")

Conditional Sale of Carbon Engineering

i(x) Net Zero PLC (AIM: IX.), the investing company which focuses on the Energy Transition, is pleased to announce that a conditional agreement has been reached for the sale of Carbon Engineering Ltd. ("Carbon Engineering"), to Occidental Petroleum Corporation ("Occidental"), the international energy company.

Occidental is an existing strategic partner of Carbon Engineering. The acquisition would see Occidental acquire the outstanding shares in Carbon Engineering for a total cash consideration of $1.1 billion, payable in three approximately equal annual payments with the first to be made at closing.

i(x) Net Zero holds an indirect circa 0.45% interest in Carbon Engineering through two special purpose vehicles . If the sale completes on the agreed terms, the Company's indirect interest would equate to approximately $7.2 million, and subject to the distribution of the proceeds over the three years following completion by those SPVs, this would generate a 7.2x return on the Company's initial investment of $1 million before any costs of the SPVs. On this basis the sale price would also represent a 2.8x multiple on the current holding value of the Company's investment in Carbon Engineering, of $2.6 million.

The sale, which remains subject to certain US and Canadian regulatory approvals and Canadian Court reviews along with other customary closing conditions is expected to complete before the end of 2023 at which point Carbon Engineering will become a wholly owned subsidiary or Occidental.  

Carbon Engineering is a Canadian clean energy company focusing on the commercialisation of direct air capture technology that removes carbon dioxide directly from the atmosphere for sequestration and storage.

The Company will provide a further update in due course, as appropriate.

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For further information visit https://ixnetzero.com/ or contact:

Notes to Editors

About i(x) Net Zero PLC

i(x) Net Zero PLC is an AIM quoted investing company that seeks to provides its shareholders with the opportunity to create long-term capital growth with positive, scalable, measurable and sustainable impact on the environment and on the communities it serves.

In accordance with its belief that the world's biggest problems are also the biggest market opportunities, i(x) Net Zero focuses on two critical areas in which it aims to make a positive impact: (i) Energy Transition and (ii) Sustainability in the Built Environment.

The Company uses a multi-strategy investment approach, providing the companies in which it invests with the expertise and catalytic capital to help them grow. To date, i(x) Net Zero has invested in biofuels, direct air capture (carbon removal), renewable energy, sustainable workforce housing and net zero construction technology.

i(x) Net Zero is a signatory to the UN Principles for Responsible Investing. 

The Company has received the London Stock Exchange's Green Economy Mark.