Carbon TerraVault Holdings, LLC (CTV) today provided a second quarter 2024 update. California Resources Corporation (NYSE: CRC) conducts its carbon management business through CTV and its subsidiaries, which pursues carbon capture and sequestration (CCS) projects that are directly sited or within close proximity to significant sources of carbon dioxide (CO2) emissions in California.
“Our Carbon TerraVault team continues to advance its business, recently submitting an application to the EPA for a new Class VI permit for CTV VI, which upon approval, will expand our portfolio of premier pore space assets in California and carbon management offering in Central California,” said Francisco Leon, CRC’s President and Chief Executive Officer. “With the merger with Aera Energy now complete, we expect further opportunities from Aera's low carbon solutions portfolio when fully integrated with CRC’s carbon management business. Looking ahead, I am excited about our progress towards CTV's targeted second half 2024 milestones as we advance toward first injection by the end of 2025."
Highlights
- Targeting final permit receipts for CTV I – 26R reservoir and the release of draft permits for CTV I – A1 / A2 reservoir in the second half of 2024
- Continue to target Final Investment Decision (FID) for CTV's first capture-to-storage project at CRC's Elk Hills cryogenic gas plant, located in Kern County in the second half of 2024
- Submitted a ~102 million metric ton (MMT) Class VI permit to the EPA for CTV VI CO2 reservoir in Central California; bringing CTV's total projected storage capacity for permits submitted to the EPA to ~320 MMT
- Expect to submit an ~27 MMT Class VI permit to the EPA for Coles Levee CO2 reservoir in Central California by the end of 2024
- Brookfield funded its second installment of $46 million for CTV I – 26R reservoir in April 2024
- With Aera, doubled the capacity of the combined company's behind the meter solar projects under development to 84 megawatts (MW)
- Post quarter-end, expanded the previously announced storage-only Carbon Dioxide Management Agreement (CDMA)1 for a renewable natural gas (RNG) project with NLC Energy LLC (NLCE) to 430 thousand metric tons per annum (KMTPA) of CO2 emissions
- CTV’s total projected CO2 injection rate of all projects under consideration now stands at 2,745 KMTPA targeting 2,335 KMTPA in Central California and 410 KMTPA in Northern California
EPA Class VI Permitting and Kern County Draft Environmental Impact Review (EIR) Update
In December 2023, the EPA released draft Class VI permits for the “CTV I – 26R” CCS project located at CRC's Elk Hills field in Kern County. These are the first draft permits released by the EPA in California. In December 2023, Kern County also released the draft EIR prepared in connection with the conditional use permit application for CTV I – 26R and released a recirculated draft EIR on June 4, 2024. The CTV I – 26R Class VI EPA public comment period ended on July 18, 2024. The EPA and Kern County are reviewing and addressing the respective comments with the goal of final permit issuance. CTV anticipates that the EPA and Kern County will deliver their final decisions on the permits in the fourth quarter of 2024. For additional information regarding CTV's Class VI permits, please visit www.epa.gov
