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The Environmental Protection Agency (EPA) has granted California Resources Corp.’s (CRC) Carbon TerraVault (CTV) Class VI well permits for the underground injection and storage of CO2, CRC said Dec. 31.
The CO2 will be injected into four wells located at the 26R reservoir in Kern County, California, which is part of CTV’s joint venture with Brookfield. The 26R site is one of two depleted oil and natural gas reservoirs in the Carbon TerraVault 1 storage site.
CTV expects to store up to 1.46 million tonnes per annum of CO2 in 26R for a total estimated capacity of 38 MMmt. The CO2 will come from its cryogenic gas plants in Elk Hills, California.
The permits arrived on the last day of the EPA’s Dec. 31 deadline and is California’s first Class VI permits to be granted.
"This milestone underscores our leadership in the carbon capture and storage sector and highlights our capability to deliver carbon management solutions to key industrial partners across the state," said Francisco Leon, CRC's president and CEO, in the announcement.
The permits allow CRC to capitalize on its CCS profile in California as well, TD Cowen analyst David Deckelbaum wrot ein a Dec. 31 research note.
“We anticipate FID [final investment decision] with JV partner, Brookfield, in the future and expect the milestone to unlock greater visibility around a business that we value at an incremental $16/share,” TD Cowen said in a report.
The company already has agreements with Hull Street Energy and NetPower to store CO2 from their operations and eight CCS permits under review with the EPA.
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