California Resources Corporation (CRC) and its carbon management business Carbon TerraVault (CTV) have approved the Golden State’s first carbon capture and storage (CCS) project, at CRC’s Elk Hills cryogenic gas plant in Kern County, California, with first injections scheduled for late 2025.
Project approval follows CRC’s recent receipt of final Class VI well permits from the Environmental Protection Agency (EPA) for underground injection and storage of carbon dioxide (CO2) into the 26R reservoir, which is part of CTV’s joint venture with Brookfield.
26R is one of two depleted oil and natural gas reservoirs that comprise the CTV I storage site, with an expected injection rate of 1.46 million metric tonnes of CO2 storage per annum. Total estimated capacity of 26R is up to 38 million metric tonnes.
CRC’s internal rate of return from the CCS project is expected to be at the high-end of its previously disclosed range of 10%-30%.
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