California Resources Corporation - Committed to Our Net Zero Future

Carbon TerraVault

California Resources Corporation’s (CRC) Carbon TerraVault (CTV) provides services that include the capture, transport and storage of carbon dioxide (CO₂) for its customers. CTV is engaged in a series of CCS projects that inject CO₂ captured from industrial sources into depleted underground reservoirs and permanently store CO₂ deep underground.

According to the International Energy Agency, CCS is one of the only technology solutions that can “...deliver the deep emissions reductions needed across key industrial processes..., all of which will remain vital building blocks of modern society.”

CCS provides a real solution for reaching and maintaining carbon neutrality, and helping California meet the emissions reduction goals under the Paris Climate Accord. With some of the strongest decarbonization goals in the country, the state is a leader in addressing climate change, and is committed to pursuing innovative technology solutions to achieve its emissions reductions and mitigate climate change.

CCS is also a pillar of CRC’s carbon management strategy and 2045 Full-Scope Net Zero goal for Scope 1, 2 and 3 emissions. Adopted in November 2021, CRC’s Net Zero goal places the company among a select few industry peers to include scope 3 emissions in their Net Zero goal. Learn more on our ESG Goals page in our ESG section.

Supporting California in its effort to achieve some of the most ambitious decarbonization goals in the U.S.:

Carbon neutrality by 2045
Net-negative emissions thereafter

For more information, contact us at:

Carbon TerraVault Team

CTV I CTV II & III

Partnership Highlights

The California Carbon Management Partnership with Brookfield is an important step in CRC’s Full-Scope Net Zero 2045 Goal and Carbon Management Strategy. It highlights the value of CRC's expansive CO ₂ pore space portfolio while demonstrating the Company’s commitment to capital discipline and retaining flexibility for strategic corporate objectives including shareholder returns and investing in the business.

Strengthens CRC’s competitive position in CCS deployment with Brookfield’s infrastructure investment experience, operating knowledge, and capital allocation. CRC and Brookfield are targeting the development of the injection of 5 million metric tons of CO₂ per annum over the first five years of the strategic partnership.

CRC and Brookfield will jointly develop CCS projects in California through a newly created JV. The JV will be owned 51% by CRC and 49% by BGTF.

California Carbon Management Partners

In August 2022, CRC entered into a joint venture (JV) with Brookfield Renewable (Brookfield) focused on carbon capture and sequestration (CCS) development opportunities.

Brookfield has committed an initial $500 million to invest in CCS projects that are jointly approved through the JV. The investment from Brookfield will be allocated through the Brookfield Global Transition Fund (BGTF), the world’s largest fund dedicated to facilitating the global transition to a net zero carbon economy. Brookfield, together with its institutional partners, will participate in the joint venture through BGTF.

The first CCS project designated for development is CRC’s 26R reservoir in the Elk Hills Field which was contributed to the partnership at a value of $10 per metric ton. The initial Brookfield commitment of $500 million provides CRC with additional capital to advance the Company's carbon management strategy, de-risks its CCS projects and aims to significantly progress the decarbonization of California. The JV is targeting the injection of 5 million metric tons per annum and 200 million metric tons of total carbon dioxide (CO₂) storage development, aligned with CRC’s 2027 goal. Reaching this target would require an estimated $2.5 billion of total capital, and Brookfield could make additional investments of more than $1 billion in the strategic partnership assuming it fully participates in these CCS projects.

The strategic partnership will benefit substantially from CRC’s first mover advantage in gaining access to available storage assets in the state of California and Brookfield’s knowledge in global clean energy markets. California is a world-leading location for the development of CCS projects, driven by the state’s Low Carbon Fuel Standard and Cap-and-Trade programs, together with the federal 45Q tax credit of $50 per ton of CO ₂ captured and permanently stored. CRC is currently progressing CO₂ storage project permit applications and represents four out of the five Class VI well project applications on file in California.

The strategic partnership will involve developing both infrastructure and storage assets required for CCS projects in California through newly created joint venture entities, Carbon TerraVault JV HoldCo, LLC (HoldCo), Carbon TerraVault JV Storage Company (StorageCo) and Carbon TerraVault JV Infrastructure Company, LLC (InfraCo).

StorageCo will build, install, operate, and maintain CO₂ storage facilities. CRC has contributed the storage rights in the 26R storage reservoir in the Elk Hills field to a wholly owned subsidiary of StorageCo.
InfraCo will build, install, operate, maintain CO₂ capture equipment and transportation assets, and provide funding as projects develop.
StorageCo and InfraCo are wholly owned by HoldCo.

For more information, view the California Carbon Management Partnership presentation (PDF).

What is CCS?

CCS+ is the proven process of safely capturing carbon dioxide (CO₂) from industrial processes such as power generation or industrial facilities and injecting and permanently storing the CO₂ deep underground for permanent sequestration in oil producing reservoirs.

The United Nations has stated that carbon capture technology is necessary to meet the goal of the Paris Climate Accord to limit temperature rise to less than 2 degrees Celsius by 2050. The International Energy Agency calls carbon capture “one of the only technology solutions that can significantly reduce emissions from... power generation and deliver the deep emissions reductions needed across key industrial processes..., all of which will remain vital building blocks of modern society.”

Capture: Multiple technologies have been developed to separate CO₂ from industrial flue gases and other gases produced at facilities such as power plants, refineries, and processing plants. These facilities are commonly retro-fitted, capturing up to 95% of the targeted CO₂, and enabling them to continue operating with significantly lower CO₂ – with the goal of net-negative emissions.
Transportation: After CO₂ is captured, it is transported for permanent underground injection. Transportation is commonly done by truck or pipeline. In some cases, existing oil and gas pipelines and existing pipeline corridors can be used to minimize surface disturbance and impact. CO₂ transport is a safe and well-established process using proven technology. More than 50 pipelines stretch 5,000 miles across the US, transporting more than 60 million tons of CO ₂ annually.
Storage: CO₂ is injected into deep underground rock formations at depths of more than a mile. These storage-capable formations include depleted reservoirs as well as deep saline aquifers, and are defined by permeable "injection zones" capped by thick impermeable rock to permanently store the injected CO₂. Permanent storage is assured via long-term measurement and monitoring with oversight by local, state and federal regulatory agencies.

California Resources Corporation’s (CRC) Carbon TerraVault is a series of CCS projects that inject CO₂ from industrial sources into depleted reservoirs and permanently store CO₂ deep underground. CCS provides a real solution for reaching and maintaining carbon neutrality, and helping California meet the emissions reduction goals under the Paris Climate Accord.

For more information about Carbon TerraVault, please contact the Carbon TerraVault team.

Project Support

Carbon TerraVault appreciates the support of the following: