Published by Todd Bush on May 2, 2023
LONG BEACH, Calif.--(BUSINESS WIRE)--California Resources Corporation (NYSE: CRC) today announced a storage-only Carbon Dioxide Management Agreement (CDMA) between Carbon TerraVault Holdings, LLC (CTV), a subsidiary of CRC that provides services including the capture, transport and storage of carbon dioxide (CO 2 ), and Yosemite Clean Energy, LLC (Yosemite). CRC also announced a second storage-only CDMA between CTV and InEnTec Inc. (InEnTec).
Relevant Story: CRC Sets Full Scope Net Zero Goal
'2023 began on a good note for Carbon TerraVault as we continued to expand our carbon management storage capacity by submitting another Class VI permit to the EPA and entering into two additional Carbon Dioxide Management Agreements with reputable partners who are committed to energy transition in California,' said Mac McFarland, Chairman of the CTV Board. 'We expect to receive a draft Class VI permit for CTV I by the end of the year and plan to further expand and diversify CTV's portfolio of customers across the energy spectrum in the state of California.'
Francisco Leon, CRC's President and Chief Executive Officer, added, 'We are evaluating the strategic positioning of our carbon management business which could include a potential separation from our legacy oil and gas business. We are excited about CTV's progress to date and believe a future separation could unlock additional value for our shareholders while continuing to help California achieve its climate goals.'
In April 2023, CTV entered into a CDMA with Yosemite, a bioenergy development company that specializes in transforming farm and forest wood waste into carbon-negative hydrogen and renewable fuel, to sequester at least 40,000 MTPA of CO 2 at CTV carbon storage vaults from a new hydrogen plant to be constructed in Oroville, Northern California. Called the Yosemite Hydrogen Facility, the plant is expected to produce 24,000 kilogram (KG) per day of hydrogen. Over the next 10 years, Yosemite plans to construct two additional hydrogen facilities in California with similar technical and production characteristics.
The initial Yosemite Hydrogen Facility will utilize dual bed gasification technology to sustainably convert woody biomass waste from local forest and agricultural producers into syngas while the generated CO 2 will be captured and then stored permanently underground by CTV. Syngas is a combination of hydrogen, methane, CO 2 , carbon monoxide, and other trace gases that is used to produce other fuels. California generates an estimated 50 million tons of forest and farm woody biomass waste annually, which when left to burn, decay, and decompose, emits immense amounts of greenhouse gases and black carbon, or soot, which is part of fine particulate air pollution. Yosemite's plans to sustainably convert biomass into syngas, from which carbon negative hydrogen is produced, is in line with California's leading emission targets as it transitions to a carbon neutral economy.
'We are excited to work with such an experienced renewable fuels partner that is dedicated to powering California's future,' said Francisco Leon, CRC's President and Chief Executive Officer. 'This new agreement underscores the need for CCS services to help reduce emissions in the state's rapidly growing new energy economy. It also expands CRC's carbon management business in Northern California and meaningfully demonstrates our dedication to helping decarbonize California across the full spectrum of the energy value chain.'
'California continues to lead the country in the development of innovative, sustainable and economically feasible solutions that help reduce its carbon emissions and transition to a carbon neutral economy,' added Thomas Hobby, Yosemite's Chief Executive Officer. 'Our green hydrogen facilities will not only help to sustainably convert existing biomass into commercial scale carbon negative hydrogen for the California fuel markets but will also support local farmers and forest landowners to further enhance their operations and better position them for the future. CTV's unique value proposition, leading CO 2 storage permitting process, storage asset position, and expertise provides us with confidence that we have found a solid partner in our quest for a sustainable, cleaner, more resilient environment for all Californians.'
In April 2023, the CTV entered into a CDMA with InEnTec, an industry leader in gasification systems that economically and responsibly turns the world's waste into valuable green products, fuels and energy.
The CDMA contemplates that InEnTec will build a new renewable dimethyl ether (rDME) production facility at CRC's Net Zero Industrial Park in Kern County California, and CTV will sequester initially at the minimum 100,000 MTPA of CO 2 from InEnTec's facility in the CTV I carbon storage vault. The rDME facility is expected to produce 80 to 100 tons per day of rDME from biomass and other waste materials to help support the decarbonization of California's economy and its transportation sector.
'This promising agreement between CTV and InEnTec provides an innovative approach to production of renewable fuel at the heart of the Kern County energy hub,' said Francisco Leon, CRC's President and Chief Executive Officer. 'Doubling our CO 2 supply commitments at CTV I in a matter of four months at our groundbreaking Elk Hills Net Zero Industrial Park further underscores the rising need for our carbon management solutions in California.'
'InEnTec's proprietary technology will reduce CO 2 emissions from the production and use of transportation fuels and help California achieve its critically important climate goals," added Jeffrey E. Surma, InEnTec's President and Chief Executive Officer. "This facility will benefit from many synergies with CTV and solidify InEnTec's company growth plans as we work to help decarbonize both the transportation and industrial sectors of the U.S. economy."
Carbon TerraVault Holdings, LLC (CTV), a subsidiary of CRC, provides services that include the capture, transport and storage of carbon dioxide for its customers. CTV is engaged in a series of CCS projects that inject CO 2 captured from industrial sources into depleted underground reservoirs and permanently store CO 2 deep underground. For more information about CTV, please visit www.carbonterravault.com.
>> In Company Spotlight: California Resources Corp.
California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC produces some of the lowest carbon intensity oil in the US and is focused on maximizing the value of its land, mineral and technical resources for decarbonization efforts. For more information about CRC, please visit www.crc.com.
Yosemite Clean Energy, LLC (Yosemite) is a bioenergy development company that specializes in transforming farm and forest wood waste into carbon-negative biofuels, including green hydrogen and renewable natural gas. Yosemite provides renewable solutions to California's transportation and broader energy sectors while reducing risk of wildfires, raising air quality, and creating jobs and economic stimulus in underserved rural communities. Over the last decade, these areas have experienced a significant rise in catastrophic wildfire due to mismanagement of the forests, causing billions of dollars of property and environmental damage. Yosemite is developing a network of biofuels plants that are partially owned by the forest and agricultural communities they serve. The company is at various stages of development planning on biofuels plants across the state of California. For further information, visit www.yosemiteclean.com.
InEnTec Inc.(InEnTec) is an industry leader in gasification systems that provides solutions to economically and responsibly turn the world's waste into valuable green products, fuels, and energy. To learn more about InEnTec, please visit www.inentec.com.
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