California Resources Explores Carbon Management Ventures
Carbon Management Update from California Resources Corporation
Signs Carbon Management Memorandum of Understanding with National Cement for California's first net zero cement facility.
California Resources Corporation (CRC) has made significant advancements in carbon management, actively working toward reducing carbon emissions and promoting sustainability. A recent highlight includes the signing of a Memorandum of Understanding with National Cement to pioneer a groundbreaking facility aimed at achieving net-zero cement production.
Francisco Leon, President and CEO of CRC, highlighted the company's pivotal role in advancing carbon management initiatives. "With the first Class VI well permits awarded by the EPA, we are positioned to offer scalable solutions for carbon storage. Our partnership with National Cement further emphasizes our focus on assisting industries with difficult emissions challenges in transitioning towards a low-carbon economy. Our project pipeline indicates a potential capacity nearing 9 million metric tons of carbon dioxide (CO?) per year, reinforcing our status as a leader in carbon management at a national level. We are determined to make an impactful difference within industrial sectors, focusing on our upcoming carbon capture and storage (CCS) project at Elk Hills," stated Leon.
Achievements in 2024
The progress made in 2024 has been impressive, showcasing CRC's commitment to innovation in carbon management:
- Obtained EPA Class VI permits for CO? storage in the CTV I - 26R reservoir, along with Kern County approval for our CTV I project.
- Increased our CO? storage portfolio by 70%, adding 134 million metric tons to our Class VI permit applications, raising our capacities under EPA review to 325 million metric tons.
- Secured 5.4 million metric tons per annum CO? management agreements with significant industrial players to ensure effective energy transition solutions.
- Aided by $12 million in funding, and with an additional $35 million selected support from the U.S. Department of Energy for decarbonization initiatives across various collaborations.
- Established new partnerships aimed at developing geothermal power and subsurface energy storage solutions.
- Initiated the Elk Hills Community Benefits Plan in conjunction with becoming the official carbon management partner for the LA Rams.
- Successfully merged Aera's carbon management capabilities into CRC's operations, enhancing our service offerings.
Looking Ahead: 2025 Prospects
As we venture into 2025, CRC remains optimistic about several upcoming projects that showcase our innovative approach:
- The construction of California’s premier CCS project at the Elk Hills cryogenic gas plant is set to begin in the second quarter, with the first CO? injection expected by the year's end.
- The MOU with National Cement for the "Lebec Net Zero" initiative highlights a novel strategy to produce carbon-neutral cement using CRC’s CO? transportation and sequestration solutions, targeting up to 1 million metric tons per annum.
- We anticipate a nearly 9 million metric tons CO? emissions management capacity in CCS projects currently under evaluation.
- Capital investments for 2025 are projected to be between $20 to $35 million, with approximately $14 to $18 million allocated specifically for the Elk Hills CCS venture.
Recent Financial Performance
In reviewing our fourth-quarter and annual results:
- We focus on our selected expenses and capital investments, indicative of our strategic financial management and commitment to growth in carbon management.
- Capital investments this year reached $6 million, reinforcing our dedication to infrastructure expansion and improvement.
- General and administrative expenses, along with the ongoing evaluation of our financial approach, set a solid groundwork for robust growth.
Regulatory Progress: EPA Class VI Permitting
A significant milestone occurred in late 2024 when the EPA issued Class VI well permits for CRC. These are nationally recognized permits for the injection and storage of CO? in depleted oil and gas fields.
With a total capacity for the CTV I - 26R reservoir estimated at 38 million metric tons, CRC is pushing towards innovative solutions for the environmental challenges facing the state.
About California Resources Corporation
California Resources Corporation is an independent energy and carbon management enterprise, focused on driving the transition toward cleaner energy. CRC prioritizes environmental stewardship, aiming to provide locally sourced energy while optimizing its resources for future sustainability efforts. With initiatives like CCS and carbon management strategies, CRC is shaping a path forward in energy transition.
Frequently Asked Questions
What is the main goal of the MOU signed with National Cement?
The MOU aims to establish California's first net zero cement facility, promoting sustainable production practices through collaboration.
What are Class VI well permits?
Class VI well permits are regulatory approvals provided by the EPA for the underground injection and storage of CO? in depleted oil and natural gas fields.
How much CO? storage capacity has CRC added?
CRC has expanded its CO? storage capacity by 70%, bringing the total capacity under review to 325 million metric tons.
What is the projected capital investment for CRC in 2025?
CRC is projecting capital investments between $20 to $35 million in 2025, focusing specifically on ongoing CCS projects.
What role does CRC play in carbon management?
CRC operates as a leader in carbon management, developing innovative solutions to capture, store, and manage CO? emissions across various sectors.
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