California DAC Hub

Carbon TerraVault Holdings, LLC (CTV), a subsidiary of California Resources Corporation (CRC), has assembled a consortium of organizations across industry, technology, academia, national labs, community, government, and labor, to pursue U.S. Department of Energy (DOE) funding under its Regional Direct Air Capture (DAC) Hubs Initiative to create the California DAC Hub, the state’s first full-scale DAC plus storage (DAC+S) network of regional DAC+S hubs. DAC+S is a solution that can remove and then permanently store atmospheric carbon dioxide (CO2) using low carbon emission energy and provide economic benefits to surrounding communities.

Map of California with icons representing community benefits of Direct Air Capture Hub
Map of California with icons representing community benefits of Direct Air Capture Hub including: use of renewable energy, utilization of reclaimed water, quality union jobs in construction and technology, and STEM Energy Transition Education Programs.

California DAC Hub will help accelerate the Golden State’s climate leadership and achieve its carbon neutrality goal, and prioritize surrounding under-represented California communities through transformative benefits potentially including local air quality improvements from helping maximize the use of renewable energy; utilization of reclaimed water and/or production of new water; quality union jobs in construction and low carbon energy technologies; and science, technology, engineering, and math (STEM) and energy transition education programs. Through California DAC Hub, the consortium will pursue funding to develop a network of DAC+S hubs across the state under the DOE’s Regional DAC Hubs Initiative, as outlined under the recent $3.5 billion Funding Opportunity Announcement, to accelerate the commercialization of atmospheric CO2 removal via integrated capture, processing, transport, and secure geologic storage. CO2 from DAC+S hubs will not be used for enhanced oil recovery. Key to the success of the California DAC Hub will be strong relationships with diverse community stakeholders to develop an equitable, just and environmentally responsible approach to the project.

$3.5 billion funding opportunity announcement. Key to success strong relationships with diverse community stakeholders

Non-profit energy research and development institute EPRI submitted an application to the DOE on March 13, 2023, as specified in the FOA instructions on behalf of the California DAC Hub consortium, including consortium lead CTV Direct, LLC, a wholly owned subsidiary of CTV focused exclusively on DAC+S, and community benefits plan lead Kern Community College District (Kern CCD). The first hub is targeted to launch in Kern County, California, and the consortium will look to expand to other locations across the state. Each hub will provide benefits to surrounding communities, such as high-paying and permanent jobs and training programs for reskilling workers, to help California progress toward its 2030 and 2045 carbon removal goals.

20 million MT of CO2 equivalent by 2023 100 million MT of CO2 equivalent by 2045

Following Governor Gavin Newsom’s call for more ambitious climate action, the California Air Resources Board (CARB) released its updated California Climate Plan to implement the most ambitious climate action of any jurisdiction in the world, including annual carbon removal/capture targets of 20 million metric tonnes (MT) of CO2 equivalent by 2030 and 100 million MT by 2045. According to the Intergovernmental Panel on Climate Change (IPCC), carbon removal methods such as DAC+S are key to mitigation pathways aimed at keeping global warming to below 1.5 degrees Celsius. In its 2022 Scoping Plan For Achieving Carbon Neutrality, CARB quoted the IPCC saying, “The deployment of CDR [carbon dioxide removal] to counterbalance hard-to-abate residual emissions is unavoidable if net zero CO2 or GHG [greenhouse gas] emissions are to be achieved.” California DAC Hub, combined with permanent geological storage, will be essential to executing on those ambitions and helping build a clean and equitable energy economy that benefits all California communities.

Led by CTV Direct, Kern CCD and EPRI, the consortium includes the following organizations and may expand as appropriate based on further community engagement and future regional hub locations:

Industry – Accenture, AECOM, Bloom Energy, Brookfield Renewable, Carbon TerraVault, EPRI, GeothermEx, GreenFire Energy, Pacific Gas and Electric (PG&E), Sage Geosystems, and Southern California Gas Company (SoCalGas);

Technology – Avnos and Climeworks;

Academia – Bakersfield College, California State University, Bakersfield (CSUB), Taft College, the University of California, Los Angeles (UCLA) Institute for Carbon Management, and the University of Michigan Global CO2 Initiative;

National Labs – Lawrence Livermore National Laboratory (LLNL), Livermore Lab Foundation (LLF), National Renewable Energy Laboratory (NREL), and Pacific Northwest National Laboratory (PNNL);

Community – African American Network of Kern County (AANKC), B3K Prosperity, Community Action Partnership of Kern (CAPK), Grandma Whoople Enterprises, Greater Bakersfield Chamber of Commerce, Kern CCD, Kern County Black Chamber of Commerce, Kern County Hispanic Chamber of Commerce (KCHCC), Mexican American Opportunity Foundation (MAOF), National Impact Mentoring and Training Program (NIMTP), The Open Door Network and the Tejon Indian Tribe;

Government – City of Bakersfield, Kern Economic Development Corporation (KEDC), and the West Kern Water District (WKWD); and

Labor – Employers’ Training Resource (ETR), International Brotherhood of Electrical Workers (IBEW) - Local 428, International Union of Operating Engineers - Local 12, Kern, Inyo, Mono Counties Building Trades Council, and the State Building and Construction Trades Council of California (SBCTC).

CTV is committed to engaging with our community-based organizations and including them throughout the development of the California DAC Hub and future associated regional hubs. Open and meaningful dialogue with our diverse stakeholders is a priority for the consortium as we expand participation of organizations and local communities.

For more information, read the full press release and presentation (PDF).