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 (CO2), and Yosemite Clean Energy, LLC (Yosemite). CRC also announced a second storage-only CDMA between CTV and InEnTec Inc. (InEnTec).
“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.”
Primary Highlights
Submitted a Class VI permit to the EPA for 34 million metric tons (MMT) of CO2 storage for CTV IV, bringing CTV’s total potential permitted storage to 174 MMT Signed storage-only CDMAs with Yosemite Clean Energy, LLC and InEnTec Inc. for 40,000 and 100,000 metric tons per annum (MTPA) of CO2 injection, respectively, bringing the total CTV injection rate to 610,000 MTPA with 200,000 MTPA targeted to Elk Hills reservoir and 410 MTPA targeted in the Sacramento basin area
Yosemite Clean Energy, LLC CDMA
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 CO2 at CTV carbon