California Resources Corporation (CRC) has partnered with Carbon TerraVault (CTV). Together they launched California’s first carbon capture project. The facility is located at the Elk Hills cryogenic gas plant. This milestone project operates in Kern County.
Project Overview and Key Features
The Elk Hills facility will store CO2 in the 26R reservoir annually. Its carbon capture capacity reaches 100,000 metric tons per year. The EPA approved four Class VI injection wells for the project. These wells extend over a mile deep underground. The approval came through on December 31, 2024.
Storage Capacity and Safety Measures
- Total storage capacity: 38 million metric tons of CO2
- Annual storage capacity: 1.46 million metric tons
- EPA-verified safety standards for drinking water protection
- Strategic location in Kern County’s agricultural and oil production hub
Carbon TerraVault Joint Venture Structure
CTV LLC and Brookfield Corporation formed a strategic partnership for this project. CRC maintains majority control with 51% ownership of the venture. Brookfield holds the remaining 49% stake in the operation. The joint venture focuses on developing CCS solutions across California. They specifically utilize the 26R reservoir for storage operations. This formation exists within CRC’s established Elk Hills Field. The partnership structure allows for efficient sharing of resources between companies. Their combined expertise strengthens the project’s technical capabilities.
Financial Benefits and Investment Details
Project Economics
- Capital infrastructure requires $14-18 million investment
- Each metric ton generates $50-60 in sequestration revenue
- Returns fall in upper range of 10-30%
- Project qualifies for $85 per ton in 45Q tax credits
Additional Financial Advantages
The project qualifies for Low Carbon Fuel Standard credits under current regulations. Additional benefits may come from reduced Cap-and-Trade liabilities. These advantages depend on upcoming CARB rule updates. The storage site’s proximity significantly reduces transportation costs. This location advantage enhances the project’s overall cost-effectiveness. The facility improves propane recovery in daily operations. It adds up to 100 barrels of natural gas liquids each day. These operational improvements contribute to the project’s financial sustainability.
Environmental Impact and Emissions Reduction
The carbon capture facility advances CRC’s commitment to environmental stewardship. It will cut Elk Hills Power Plant emissions by 7%. This reduction affects both Scope 1 and Scope 2 emissions. The project aligns with California’s 2045 net-zero target. CRC has developed comprehensive plans for methane reduction. They aim to decrease methane emissions by 30%. This target uses 2020 levels as a baseline. The deadline extends to 2030. Their environmental strategy includes water conservation goals. They plan to reduce freshwater usage by 30% before 2025.
Strategic Importance for California’s Climate Goals
This project represents a major step in California’s environmental initiatives. It demonstrates the viability of market-based climate solutions. The facility creates new jobs in carbon capture technology. It supports the state’s emission reduction goals through practical measures. The project proves that industrial facilities can transition to cleaner operations. It serves as a model for future carbon capture installations. Local communities benefit from improved environmental conditions. The economic advantages extend throughout the region.
Water Conservation Initiatives
CRC’s water strategy exceeds standard state requirements for conservation. Their 30% reduction target surpasses California’s baseline goal of 15%. The company provides more treated water than it consumes. This makes CRC a net positive contributor to local water supplies. Their water management integrates seamlessly with carbon capture operations. The system maximizes efficiency in both water use and carbon storage. CRC’s approach demonstrates environmental leadership in resource management.
Technology Implementation
The facility uses advanced systems to separate CO2 from industrial processes. These capture mechanisms ensure efficient carbon dioxide removal. The transportation system moves CO2 safely to storage locations. Underground storage follows strict safety protocols. The facility integrates smoothly with existing infrastructure. Modern monitoring systems track all operational aspects. Safety measures protect both workers and the environment. The technology creates a blueprint for future projects.
Each system component undergoes regular performance evaluations. The facility maintains continuous environmental monitoring. Data collection helps optimize daily operations. The project showcases practical emissions reduction technology. It proves the viability of industrial-scale carbon capture. The implementation serves as a model for similar facilities.
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