Carbon TerraVault and National Cement Sign MOU for California’s First Net Zero Cement Facility

Carbon TerraVault Expects to Transport and Sequester up to 1 Million Metric Tons of CO2 Emissions Annually

LONG BEACH, Calif., March 03, 2025 (GLOBE NEWSWIRE) – California Resources Corporation (NYSE: CRC) and its carbon management business, Carbon TerraVault (CTV), today announced the signing of a Memorandum of Understanding (MOU)¹ with National Cement Company of California Inc. to provide carbon management services for the “Lebec Net Zero”—a first-of-its-kind initiative to produce carbon-neutral cement at National Cement’s facility in California.

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MOU Highlights

• CTV plans to develop transportation and sequestration solutions for up to 1 million metric tons per annum (MMTPA) of carbon dioxide (CO₂) emissions captured from National Cement’s plant in Lebec, Kern County, California.

• Captured CO₂ is expected to be safely transported and securely stored in CTV’s underground storage reservoirs, contributing to California’s industrial decarbonization efforts.

“Lebec Net Zero” Highlights

• The project is expected to be California’s first net-zero cement facility, integrating carbon capture technology, utilizing locally sourced biomass fuel from agricultural byproducts, and producing limestone calcined clay cement (LC3).

• This effort aligns with Kern County’s Carbon Management vision, promoting economic growth, job creation, and tax benefits for local communities.

• The project was one of 33 selected by the U.S. Department of Energy (DOE) for funding under the Industrial Demonstrations Program as a public-private partnership, with the DOE committing up to $500 million in matching funds to accelerate its development.

• Pending customary approvals, operations are expected to start in 2031.

Francisco Leon, President and Chief Executive Officer of CRC, emphasized the significance of this partnership:“This MOU with National Cement underscores the increasing demand for innovative decarbonization solutions within California’s industrial sector. Achieving carbon neutrality in the cement industry requires bold action, and this partnership is a critical step in developing the state’s first carbon capture, transport, and storage project for this essential sector. We have proven carbon management expertise and strategically located CO₂ storage assets, allowing us to deliver innovative, reliable, and economically viable energy transition solutions.”

Eric Holard, Chief Executive Officer of National Cement, commented:“This is an exciting and transformative project for the cement industry. We are making a significant investment because we believe in creating a cleaner future and bringing innovation to domestic manufacturing. CTV’s leadership in safe and responsible carbon management, combined with our strategic and operational alignment, provides a clear pathway for this project being successful.”

Including this MOU with National Cement, CTV’s total carbon capture and sequestration (CCS) projects under consideration now stand at nearly 9 MMTPA of CO₂ emissions, reinforcing its domestic leadership in industrial decarbonization and carbon storage solutions.

¹ MOUs and CDMAs are non-binding agreements. The projects and transactions described in an MOU or CDMA are subject to certain conditions precedent, typically including the negotiation of definitive documents, a final investment decision by the parties, and receipt of EPA Class VI permits and other regulatory approvals.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, is developing services to capture, transport and permanently store CO2 for its customers. CTV is engaged in a series of proposed CCS projects that if developed will inject CO2 captured from industrial sources into depleted reservoirs deep underground for permanent sequestration. For more information, visit carbonterravault.com.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

About National Cement

National Cement Company is a producer of cement and concrete which are essential materials for the built environment and support economic growth of all kinds. National has cement plants at Lebec, California and Ragland, Alabama, cement distribution terminals in Georgia, South Carolina, and Tennessee, and over 60 ready-mix concrete plants across California, Georgia, and Alabama. National’s strategically located network of production and distribution facilities ensures that it can meet the diverse needs of its customers. The company strives to minimize its environmental footprint through efficient and advanced production methods. For more information about National Cement, please visit www.nationalcement.com.