- California Resources Corporation and its carbon management business, Carbon TerraVault have approved the Golden State’s first carbon capture and storage (CCS) project.
- California Natural Resources Secretary Wade Crowfoot said the project represents another step forward in California’s pathway to combat climate change and achieve carbon neutrality.
California Resources Corporation (CRC) and its carbon management business Carbon TerraVault (CTV) have approved the Golden State’s first carbon capture and storage (CCS) project, at CRC’s Elk Hills cryogenic gas plant in Kern County, California, with first injections scheduled for late 2025.
Project approval follows CRC’s recent receipt of final Class VI well permits from the Environmental Protection Agency (EPA) for underground injection and storage of carbon dioxide (CO2) into the 26R reservoir, which is part of CTV’s joint venture with Brookfield.
26R is one of two depleted oil and natural gas reservoirs that comprise the CTV I storage site, with an expected injection rate of 1.46 million metric tonnes of CO2 storage per annum. Total estimated capacity of 26R is up to 38 million metric tonnes.
CRC’s internal rate of return from the CCS project is expected to be at the high-end of its previously disclosed range of 10 per cent-30 per cent.
California Natural Resources Secretary Wade Crowfoot said the project represents another step forward in California’s pathway to combat climate change and achieve carbon neutrality over the next two decades.
“While slashing carbon pollution is the main thrust of our climate programmes, capturing and removing carbon from our atmosphere is also essential to meeting our carbon targets,” he said.
“This project, which repurposes fossil fuel extraction infrastructure and expertise to sequester carbon, is a forward-looking way to remove emissions while creating jobs in an emerging sector. Simply put, getting projects like this operating in a safe and effective way is critical for our climate progress.”
Natalie Adomait, Managing Partner at Brookfield, said the announcement reaffirms its commitment to collaborating with the right partners on economically viable energy solutions that advance the transition to Net Zero. “Together with CRC, we are deploying our clean energy expertise to accelerate decarbonisation and drive capital deployment across California’s critical industries,” she said.