Lone Cypress Completes the FEED Study for its California Blue Hydrogen Project

Lone Cypress Energy Services ("Lone Cypress") today announced the completion of the Front-End Engineering Design (FEED) study for its Lone Cypress Hydrogen Project located at the Elk Hills Field in Kern County, California. The study encompassed a 65 metric tonnes per day steam methane reformation plant with an integrated post combustion carbon capture system, hydrogen liquefaction, storage, dispensing, and all associated balance of plant infrastructure.

The study was conducted by Lone Cypress as the project developer and project management office with the support of its strategic technical partners and served to further validate the technical and commercial feasibility of the project. "The completion of the FEED study is a critical step in substantiating our assumptions around project costs and has given us the confidence to move forward with project development. Based on this analysis, we feel very confident this facility will generate the most cost-competitive low-carbon liquid hydrogen in the Western United States," said Greg Brooks, Lone Cypress' President and Chief Executive Officer.

The Lone Cypress Hydrogen Project represents a partnership between Lone Cypress and Carbon TerraVault JV Holdco, LLC ("CTV"), a joint venture between California Resources Corporation ("CRC") and Brookfield Renewable. The project will leverage carbon sequestration assets currently in development by CTV in addition to being strategically located at the Elk Hills Field.

"CTV is pleased to be working with Lone Cypress to develop its blue hydrogen facility at our Elk Hills Field. The completion of the FEED study brings us one important step closer to enabling the net zero energy economy and advancing the energy transition in California and beyond," said Francisco Leon, CRC President and Chief Executive Officer.

Aside from detailed engineering, Lone Cypress submitted the Conditional Use Permit application for the project with the Kern County Planning and Natural Resources Department in May. Lone Cypress is also working to finalize definitive agreements for hydrogen off-take from the facility.

Lone Cypress anticipates reaching a final investment decision before the end of the year, with an expected start-up in the 4th quarter of 2025.