Video Transcript

CCS is the proven process of safely capturing carbon dioxide (CO2) from industrial processes and transporting and permanently storing it underground.

Flue gas is transferred by huge ducts from the stack of an industrial plant to the carbon capture plant.

Customized liquid absorbents called amines are used in the capture plant to absorb CO2. Heat is then used to recover the purified CO2 for pumping and storage underground.

CO2 enters the compression complex where dehydration and compression of CO2 occurs.

CO2 is injected into deep underground rock formations at depths of more than a mile.

These storage-capable formations include depleted reservoirs as well as deep saline aquifers and are defined by permeable “injection zones” capped by thick impermeable rock to permanently store the injected CO2.

To put this in perspective, 8000 ft Injection Zones are up to 3 times deeper than the tallest building in the world.

CCS provides a real solution for reaching and maintaining carbon neutrality, and helping California meet the emissions reduction goals under the Paris Climate Accord. END

CCS is a Real Solution

Carbon capture and storage (CCS) provides real solutions for reaching and maintaining carbon neutrality, and helping California meet the emissions reduction goals under the Paris Climate Accord. According to the International Energy Agency, CCS is one of the only technology solutions that can “...deliver the deep emissions reductions needed across key industrial processes..., all of which will remain vital building blocks of modern society.” That’s why California Resources Corporation's (CRC) Carbon TerraVault is developing pathways that offer both immediate decarbonization benefits and long-term solutions to reach and maintain carbon neutrality.

With some of the strongest decarbonization goals in the country, California is a leader in addressing climate change, and is committed to pursuing innovative technology solutions to achieve its emissions reductions and mitigate climate change.

Employee wearing helmet looking at hills

Carbon TerraVault

CRC launched Carbon TerraVault (CTV) as part of its carbon management business in 2021 to help advance the energy transition and curb rising global temperatures at 1.5°C. We aim to do this by building scalable, low-carbon, and cost-effective solutions and bringing rewarding jobs to our local communities.

CTV will provide services that include the capture, transport and storage of carbon dioxide (CO2) for its customers. CTV is developing CCS and direct air capture plus storage (DAC+S) projects that inject CO2 captured from industrial sources into depleted underground reservoirs and permanently store CO2 deep underground.

CRC has identified up to 1 billion metric tons of CO2 permanent storage capacity across California that will help contribute to the decarbonization of the state. CRC has applied for several permits for permanent CCS vaults at the Elk Hills Field in Kern County and in the Sacramento Basin in Northern California.

Learn more by downloading our Carbon TerraVault fact sheet, available in English (PDF) and Spanish (PDF).

Carbon management is a natural extension of CRC’s core competencies and a pillar of our 2045 Full-Scope Net Zero goal for Scope 1, 2 and 3 emissions. Adopted in November 2021, CRC’s Net Zero goal places the company among a select few industry peers to include scope 3 emissions in their Net Zero goal. Learn more about our ESG Goals page in our ESG section.

California Carbon
Management Partners

In August 2022, CRC entered into a joint venture (JV) with Brookfield Renewable (Brookfield) focused on CCS development opportunities.

Brookfield has committed an initial $500 million to invest in CCS projects that are jointly approved through the JV. The investment from Brookfield will be allocated through the Brookfield Global Transition Fund (BGTF), the world’s largest fund dedicated to facilitating the global transition to a net zero carbon economy. Brookfield, together with its institutional partners, will participate in the joint venture through BGTF.

The first CCS project designated for development is CRC’s 26R reservoir in the Elk Hills Field which was contributed to the partnership at a value of $10 per metric ton. The initial Brookfield commitment of $500 million provides CRC with additional capital to advance the Company's carbon management strategy, de-risks its CCS projects and aims to significantly progress the decarbonization of California. The JV is targeting the injection of 5 million metric tons per annum and 200 million metric tons of total CO2 storage development, aligned with CRC’s 2027 goal. Reaching this target would require an estimated $2.5 billion of total capital, and Brookfield could make additional investments of more than $1 billion in the strategic partnership assuming it fully participates in these CCS projects.

The strategic partnership will benefit substantially from CRC’s first mover advantage in gaining access to available storage assets in the state of California and Brookfield’s knowledge in global clean energy markets. California is a world-leading location for the development of CCS projects, driven by the state’s Low Carbon Fuel Standard and Cap-and-Trade programs, together with the federal 45Q tax credit of $50 per ton of CO2 captured and permanently stored. CRC is currently progressing CO2 storage project permit applications and represents four out of the five Class VI well project applications on file in California.

The strategic partnership will involve developing both infrastructure and storage assets required for CCS projects in California through newly created joint venture entities, Carbon TerraVault JV HoldCo, LLC (HoldCo), Carbon TerraVault JV Storage Company (StorageCo) and Carbon TerraVault JV Infrastructure Company, LLC (InfraCo).

  • StorageCo will build, install, operate, and maintain CO2 storage facilities. CRC has contributed the storage rights in the 26R storage reservoir in the Elk Hills field to a wholly owned subsidiary of StorageCo.
  • InfraCo will build, install, operate, maintain CO2 capture equipment and transportation assets, and provide funding as projects develop.
  • StorageCo and InfraCo are wholly owned by HoldCo.

For more information, view the California Carbon Management Partnership presentation (PDF).

Timeline

Carbon TerraVault
Is Born
  • Up to 1 billion metric tons (MT) of CO2 Storage Opportunity
  • Initial 200 million MT of CO2 in Focus
  • Submitted Class VI Permit for CTV I (26R)
2021
2045 Full-Scope Net Zero Goal
  • Defined a path to reduce CRC's Scope 1, 2 and 3 emissions
  • Submitted Class VI permit for CTV I (A1/A2)
Early-Stage Development Goals
  • 200 million MT of Class VI permits submitted by YE25
  • Begin 1 million metric tons per annum (MTPA) Injection by YE25
  • Begin 5 million MTPA injection by YE27
Introduced CTV to Northern California
  • Submitted Class VI Permit for CTV II and III
  • Announced NextDecade CalCapture Feed Study
  • Defined CRC’s ESG Goals
CTV JV With Brookfield Renewable
  • Initial commitment of $500 million from BGTF1
  • Kern County Energy Transition Investment
Expanded California’s CCS Market Opportunity By 2.4x4
  • Expanded CCS total market opportunity to include New Energy Economy emissions
  • Inflation Reduction Act: 45Q tax Incentive rose to $85/MT for Carbon Storage3
California's First CCS Storage Project - Carbon Dioxide Management Agreement (CDMA) with Lone Cypress Energy Services
  • Clean Hydrogen Facility at CTV I
  • Sequester 100,000 MTPA of CO2
  • Announced proposed CTV Clean Energy Park at Elk Hills (formerly Net Zero Industrial Park)
2022
CDMA with Grannus LLC
  • Clean Ammonia and Hydrogen Facility at CTV III
  • Sequester 370,000 MTPA of CO2
  • Decarbonizing California's Agricultural Sector
California DAC Hub Consortium
  • Accelerating DAC+S in California through its wholly owned subsidiary CTV Direct
  • The first DAC Hub is targeted for Kern County and is expected to store CO2 at the CTV I reservoir
Advancing CalCapture & Lone Cypress Project to the Next Stage of Development
  • Completion of NextDecade Feed Study
  • Targeting to FID Lone Cypress Project in YE235
CTV VI Permit and CDMAs
  • Submitted Class VI permit for CTV IV
  • Signed CDMAs with Yosemite Clean Energy, LLC and InEnTec Inc. for 40,000 and 100,000 MTPA of CO2 injection, respectively
CTV V Permit and CDMA
  • Submitted Class VI permit for CTV V
  • Signed CDMA with Verde Clean Fuels Inc.
  • Expanded Lone Cypress clean hydrogen project to expected 205,000 MTPA
California DAC Hub Selected to receive funding from the DOE
CCS Project at Elk Hills Gas Plant and CDMA
  • Announced CCS project at CRC's Elk Hills Cryogenic Gas Plant
  • Signed CDMA with NLC Energy LLC for 150,000 MTPA of CO2 injection
U.S. EPA released Draft Class VI Permits for CRC's Carbon TerraVault
  • Kern Country Planning and Natural Resources Department released Draft Environmentl Impact Report (DEIR) for CTV I for publc review
2023
Brookfield Second Installment
  • Brookfield funded second installment of $46 million for CTV I – 26R reservoir in April 2024
Class VI Permit for CTV VI
  • Submitted ~102 million MT Class VI permit for CTV VI CO2 reservoir in Central California
  • Brings CTV's total projected storage capacity for permits submitted to the EPA to ~325 MMT
NLCE CDMA Expansion
  • Expanded previously announced storage-only CDMA with NLC Energy LLC (NLCE) to 430,000 MTPA of CO2 injection
2024
2021
Carbon TerraVault Is Born
  • Up to 1 billion metric tons (MT) of CO2 Storage Opportunity
  • Initial 200 million MT of CO2 in Focus
  • Submitted Class VI Permit for CTV I (26R)
2021
2045 Full-Scope Net Zero Goal
  • Defined a path to reduce CRC's Scope 1, 2 and 3 emissions
  • Submitted Class VI permit for CTV I (A1/A2)
2022
Early-Stage Development Goals
  • 200 million metric tons (MT) of Class VI permits submitted by YE25
  • Begin 11 million metric tons per annum (MTPA) Injection by YE25
  • Begin 5 million MTPA injection by YE2
2022
Introduced CTV to Northern California
  • Submitted Class VI Permit for CTV II and III
  • Announced NextDecade CalCapture Feed Study
  • Defined CRC’s ESG Goals
2022
CTV JV With Brookfield Renewable
  • Initial commitment of $500 million from BGTF1
  • Kern County Energy Transition Investment
2022
Expanded California’s CCS Market Opportunity By 2.4x4
  • Expanded CCS total market opportunity to include New Energy Economy emissions
  • Inflation Reduction Act: 45Q tax Incentive rose to $85/MT for Carbon Storage3
2022
California's First CCS Storage Project - Carbon Dioxide Management Agreement (CDMA) with Lone Cypress Energy Services
  • Clean Hydrogen Facility at CTV I
  • Sequester 100,000 MTPA of CO2
  • Announced proposed CTV Clean Energy Park at Elk Hills (formerly Net Zero Industrial Park)
2023
CDMA with Grannus LLC
  • Blue Ammonia and Hydrogen Facility at CTV III
  • Sequester 370,000 MTPA of CO2
  • Decarbonizing California's Agricultural Sector
2023
California DAC Hub Consortium
  • Accelerating DAC+S in California through its wholly owned subsidiary CTV Direct
  • The first DAC Hub is targeted for Kern County and is expected to store CO2 at the CTV I reservoir
2023
Advancing CalCapture & Lone Cypress Project to the Next Stage of Development
  • Completion of NextDecade Feed Study
  • Targeting to FID CalCapture in 1H24
  • Targeting to FID Lone Cypress Project in YE235
2023
CTV VI Permit and CDMAs
  • Submitted Class VI Permit for CTV IV
  • Signed CDMAs with Yosemite Clean Energy, LLC and InEnTec Inc. for 40,000 and 100,000 MTPA of CO2 injection, respectively
2023
CTV V Permit and CDMA
  • Submitted Class VI permit for CTV V
  • Signed CDMA with Verde Clean Fuels Inc.
  • Expanded Lone Cypress blue hydrogen project to expected 205,000 MTPA
2023
California DAC Hub Selected to receive funding from the DOE
2023
CCS Project at Elk Hills Gas Plant and CDMA
  • Announced CCS project at CRC's Elk Hills Cryogenic Gas Plant
  • Signed CDMA with NLC Energy LLC for 150,000 MTPA of CO2 injection
2023
U.S. EPA released Draft Class VI Permits for CRC's Carbon TerraVault
  • Kern Country Planning and Natural Resources Department released Draft Environmentl Impact Report (DEIR) for CTV I for publc review
2024
Brookfield Second Installment
  • Brookfield funded second installment of $46 million for CTV I – 26R reservoir in April 2024
2024
Class VI Permit for CTV VI
  • Submitted ~102 million MT Class VI permit for CTV VI CO2 reservoir in Central California
  • Brings CTV's total projected storage capacity for permits submitted to the EPA to ~325 MMT
2024
NLCE CDMA Expansion
  • Expanded previously announced storage-only CDMA with NLC Energy LLC (NLCE) to 430,000 MTPA of CO2 injection

Source: CRC unless otherwise stated. (1) Brookfield Global Transition Fund. Initial commitment applies to CCS projects that are jointly approved through the CTV JV. (2) EBITDA is a non-GAAP measure. For all historical nonGAAP financial measures please see the Investor Relations page at www.crc.com for a reconciliation to the nearest GAAP equivalent and other additional information. Note CTV JV EBITDA estimates include 45Q tax credits. See slides 27, 28 and 38 of CRC’s 3Q22 Earnings slides for detailed information on the previously disclosed Type Curve. (3) Source: Inflation Reduction Act. (4) Source: Energy Futures Initiative and Stanford University. “An Action Plan for Carbon Capture and Storage in California: Opportunities, Challenges, and Solutions.” October 2020; EPA; NATCARB; CARB; Internal estimates; Includes Brownfield and Greenfield opportunities; CARB Scoping Plan: AB32 Source Emissions Final Modeling Results, October 28, 2022; Department of Energy Hydrogen Program Plan, U.S. Department of Energy, November 2020. Converted from CARB’s estimated 13% of U.S. hydrogen demand of 21 – 44MMTPA. (5) Draft permit expected by YE23, but is subject to EPA approvals and public review. FID subject to permit approvals.

Project Support

Carbon TerraVault appreciates the support of the following:

Download our Carbon TerraVault fact sheet, available in English (PDF) and Spanish (PDF).