Learning Assignment: Name: Ram Chhetri Carbon Engineering (" Direct Air Capture Technology")

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Learning assignment

Name: Ram chhetri

Carbon Engineering( “ Direct Air Capture technology”)

August 2020
Business administration
Degree Programme in International business
1 Contents

1 Introduction: -..................................................................................................3

2 SWOT analysis: -...............................................................................................4

3 Problem solving: -.............................................................................................5

4 Participation needed: -.....................................................................................5

5 Competitive advantage: -..................................................................................6

6 Major competitiors: -........................................................................................6

7 Personal opinion: -............................................................................................7


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CARBON ENGINEERING

1 Introduction: -

Based on Squamish, Canada, CE is the company working to solve the major threat to human
life, climate change. The main cause of climate change is the rapid emission of greenhouse
gas namely carbon dioxide in the air. CE has come up with the technology called “DIRECT AIR
CAPTURE (DAC)” technology that can directly capture carbon dioxide from the atmosphere,
store them and through the process of electrolysis and other series of processes, eco-
friendly liquid fuel (synthetic fuel) is developed. The liquid fuel thus developed can be used
as the regular diesel or fuel in the buses, cars and air planes as well. The gasoline is not
100% free from carbon dioxide but is relatively safer and biologically sustainable. The
technology is expected to capture 1 million tons of carbon dioxide which would require 40
million trees globally. Additionally, there are 40 billion tons of carbon dioxide present every
year. The technology once licensed would produce 200 barrels of synthetic fuels a day. The
technology built is sure to lead towards low-carbon economy.

The technology has been given utmost priority and due publication from the elite
newspapers such as National geographic, Forbes, The economist and The New York times
and many others. These veterans, with common voice, have genuinely suggested the
technology can best fit to battle climate change. Carbon engineering has been taken as the
hope to provide carbon free and toxic free environment.
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2 SWOT analysis: -

The technology required 8 years of its development solely focused on contributing to


the climate change. The technology addresses the most alarming problem ever faced
by humanity called climate change. Using SWOT analysis: -

1.) Strength: - Climate change has made an adverse effect on the world and
personally it has been one of our major concern. Since, the company address
the major humanitarian problem, it is undoubtedly the best strength of
Carbon engineering. Being able to minimize carbon level in the atmosphere
and providing ways to lead healthier and happier life for the generations to
come has been its unbreakable strength. Further, the research the company
has done and technology they had developed are undoubtedly the strength
of the company.

2.) Weakness: - It has been the long time since we used oils and gasoline in our
vehicles. We have been using oils for many different purposes in our day to
day life. So, the major weakness for carbon engineering is the people´s
response to sudden change and meet cost effectiveness. The synthetic fuel
generated cost way more than the regular gasoline per barrels.

3.) Opportunity: -The opportunity which the company can explore is


tremendous. They have major focus on aviation industry where they want to
decarbonize the whole ecosystem. Also, the synthetic fuels can be used in
different vehicles. The carbon capturing industry seems to explore more in
the future and is expected to be a trillion-dollar industry.
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4.) Threats: - More carbon capturing groups and increasing competitiveness is


one of the threats the company is facing. The companies such as “Enhanced
energy group”, “Inventys”, “Svante”, “Climeworks” are the main competitors
of carbon engineering. Also, the price of final product and ignorance of
people towards climate change is the major threat the company is dealing
with.

3 Problem solving: -

The problem they are solving is the environmental problem which indeed is climate
change and is thus predicted to cause more drastic effect on the environment and
wellbeing of the people. They are essentially trying to produce synthetic fuels which
is carbon free. Their main aim is to decarbonize the whole atmosphere and create
world with negative carbon emission or neutral carbon emission.

The problem is not within ourselves. But rather it is a catastrophic situation where
everyone is prone to harsh effect of climate change. Named as a global and
humanitarian threat, carbon dioxide emission has led to different vulnerable
diseases, floods, landslides, melting of glaciers and many more biological problems.

4 Participation needed: -

For the company to succeed, it is of utmost importance for every organization


ranging from small to large to governmental agencies to participate co-operatively.
With only the strict governance and thorough attention of carbon producing
companies can carbon engineering succeed. Delegates such as Bill Gates, companies
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such as chevron, occidental petroleum and BHP has invested in the company and
according to latest report they have collected 68 million dollars in funding.

5 Competitive advantage: -

I would say the company is fast mover and has tremendous competitive advantage. It
is possible because of the technology they have developed and the mindset they
have regarding climate change. The powerplant required can be built at very low cost
and requires minimal land. The company has created an ecosystem where carbon
dioxide is neutralized and cab be used in an eco-friendly manner. The competitive
advantage of the company is necessarily understood since huge oil companies have
invested here and thus seeking for clean energy. Furthermore, their major concern is
on aviation business, which is itself a trillion dollars industry. Thus, the company has
great vision and definitely bear competitive advantage.

6 Major competitiors: -

The competition is kind of strong but carbon engineering has comeptitive advangage
since they are producing synthetic fuel with prime focus on aviation industry. The
companies such as “Enhanced energy group”, “Inventys”, “Svante”, “Climeworks” are
the main competitors of carbon engineering.

It took 8 years of enginnering and thorough research for carbon engineering to


develop direct air capture technology. The resistance can be dilemma whether
people will buy their product or not and whether people are well informned about
the climate change. I would say they might have psychological resistance within
themselves about their product.
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The major challenge the company might face is the cost competitiveness and
struggle to get the attention of public towards climate change. Also, slow governance
to subsidize them and allocate certain land to place their plant can be a major
problem they can face.

7 Personal opinion: -

It is of no doubt I wouldn`t invest here. It is a great company of enthusiastic


individuals with the main motto of saving the world. The direct air capture
technology they have developed is great and imapactful. They have solid engineering
and they are pretty clear on whom to focus and bear a competitive advantage as
well. Therefore, i would surely invest in the company.

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