(Source: Shutterstock.com)
The Environmental Protection Agency (EPA) has granted California Resources Corp.’s (CRC) Carbon TerraVault (CTV) Class VI well permits for the underground injection and storage of CO2, CRC said Dec. 31.
The CO2 will be injected into four wells located at the 26R reservoir in Kern County, California, which is part of CTV’s joint venture with Brookfield. The 26R site is one of two depleted oil and natural gas reservoirs in the Carbon TerraVault 1 storage site.
CTV expects to store up to 1.46 million tonnes per annum of CO2 in 26R for a total estimated capacity of 38 MMmt. The CO2 will come from its cryogenic gas plants in Elk Hills, California.
The permits arrived on the last day of the EPA’s Dec. 31 deadline and is California’s first Class VI permits to be granted.
"This milestone underscores our leadership in the carbon capture and storage sector and highlights our capability to deliver carbon management solutions to key industrial partners across the state," said Francisco Leon, CRC's president and CEO, in the announcement.
The permits allow CRC to capitalize on its CCS profile in California as well, TD Cowen analyst David Deckelbaum wrot ein a Dec. 31 research note.
“We anticipate FID [final investment decision] with JV partner, Brookfield, in the future and expect the milestone to unlock greater visibility around a business that we value at an incremental $16/share,” TD Cowen said in a report.
The company already has agreements with Hull Street Energy and NetPower to store CO2 from their operations and eight CCS permits under review with the EPA.
Recommended Reading
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
California Resources Names Crespy as Executive VP, CFO
2024-11-26 - Clio C. Crespy has worked on some of California Resources’ “most significant” projects, including the Carbon TerraVault joint venture and the direct air capture hub at Elk Hills, said CEO Francisco Leon.
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
J. Douglas Schick Succeeds PEDEVCO Majority Owner Simon Kukes as CEO
2024-12-12 - Simon G. Kukes, who took over PEDEVCO in 2018, said the company has since worked toward entering joint development agreements in the Permian and Denver-Julesburg basins.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.