Storage project being developed alongside blue hydrogen project.

By Dale Lunan

California Resources Corporation (CRC) said December 7 Carbon TerraVault JV (CTV JV) and Lone Cypress Energy Services had entered into a carbon dioxide management agreement to sequester CO2 from a new blue hydrogen plant under construction at CRC’s Elk Hills field in Kern County, California.

CTV JV is a carbon management partnership established earlier this year between CRC’s subsidiary Carbon TerraVault and Brookfield Renewable to develop carbon capture and storage (CCS) infrastructure and storage assets in California. The Elk Hills blue hydrogen project is the first by the joint venture.

Under the CO2 management agreement, Lone Cypress Energy Services will develop a facility producing 30 tons/day of blue hydrogen while sequestering 100,000 mt/year of CO2. There is potential to double the size of the project, to 60 tons/day of blue hydrogen and 200,000 mt/year of sequestered CO2.

The CTV JV will provide infield transportation and a permanent CO2 sequestration site in exchange for an injection fee on a per ton basis. 

The facility will employ a proprietary steam methane reformation technology with an integrated carbon capture system. A final investment decision is expected in late 2023, with full operations, including CO2 injections, anticipated by the end of 2025.

“CRC is enabling the net zero energy economy by partnering with Lone Cypress to site a brand-new hydrogen facility at our Elk Hills field as well as offering permanent CO2 sequestration through Carbon TerraVault,” CRC CEO Mac McFarland said. “This CTV storage project is a meaningful step forward in CRC’s rollout of carbon capture and sequestration technology across the state and is the first of, what we believe, will be many projects to come.”