California Resources inks another CCS deal
SUMMARY
Blue ammonia/blue hydrogen facility will sequester 370,000 mt/yr of carbon dioxide.
By Dale LunanPOSTED IN:
Independent oil and gas producer California Resources said January 4 its Carbon TerraVault (CTV) subsidiary had entered into a carbon dioxide management agreement with cleantech company Grannus to advance a blue ammonia and blue hydrogen production facility in northern California.
The agreement, which supports CTV’s ambitions to develop 5mn metric tons/year of carbon capture and storage (CCS) capacity by the end of 2027, is the second it has signed in the past month, following on the heels of a similar arrangement with Lone Cypress Energy Services in early December.
The Grannus facility, located in San Joaquin County, is expected to produce 150,000 mt/yr of blue ammonia and 10,000 mt/yr of blue hydrogen while sequestering about 370,000 mt/yr of CO2 in Carbon TerraVault’s nearby CTV III vault, which has about 71mn mt of CO2 storage capacity.
CTV will provide infield CO2 transportation and storage services in exchange for a per ton injection fee. CO2 capture capital is essentially eliminated since capture capabilities are built into the base design of the blue ammonia/blue hydrogen facility.
Most of the blue ammonia will be marketed to CALAMCO, a California-based cooperative made up of about 900 dealer and grower members, representing a majority of the agricultural demand for ammonia in the state.
Although conditions for a final investment decision are still being refined, CTV expects commercial operations at the facility will begin before the end of 2027.
