Consortium Accelerates California’s Climate
Leadership and Offers Transformative Benefits to Local
Communities
Carbon TerraVault Holdings, LLC (CTV), a subsidiary of
California Resources Corporation (NYSE: CRC), today announced it
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.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20230207005539/en/
California DAC Hub Consortium (Graphic:
Business Wire)
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 (FOA), 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.
Non-profit energy research and development institute EPRI
intends to submit an application to the DOE on or before 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.
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.
The blueprint for expanding DAC+S throughout California
leverages the significant ongoing investments in the San Joaquin
Valley community, including:
- The High Road Training Partnerships (HRTP) initiative, a
$10 million demonstration project designed to model partnership
strategies in the state to address urgent questions of income
inequality, economic competitiveness, and climate change through
regional skills strategy programs. Projects identified for the San
Joaquin Valley include “High Road to Manufacturing in San Joaquin
Valley” and “High Road to Regional Workforce Strategies: Kern
County.”
- The Community Economic Resilience Fund (CERF), a program
created to promote a sustainable and equitable recovery from the
economic distress of COVID-19 by supporting new plans and
strategies to diversify local economies and develop sustainable
industries that create high-quality, broadly accessible jobs for
all Californians. CERF has named the Kern Coalition one of 13 High
Road Transition Collaboratives to receive funding. Kern Coalition
is a partnership between Better Bakersfield and Boundless Kern (B3K
Prosperity), Community Action Partnership of Kern (CAPK), Kern Inyo
and Mono Central Labor Council, Building Healthy Communities, and
Kern CCD.
- Two Local Energy Action Plan (LEAP) grants
awarded by the DOE to support locally tailored pathways to clean
energy for the County of Kern and City of Bakersfield.
- $50 million in state funds to create a California Renewable
Energy Laboratory (CREL) at Kern CCD to support the energy
industry in the region with four projects: 1) Carbon Dioxide
Reduction Center of Excellence, 2) Clean Energy and Grid Resilience
Center of Excellence, 3) Clean Transportation Center of Excellence,
and 4) Workforce Innovation and Learning Center. These four centers
will partner with the District’s colleges to provide formal and
informal learning opportunities for the region’s community centered
on energy, including living laboratories featuring new technologies
used in microgrids and carbon dioxide removal. CREL also has the
mission to partner with local industry to identify transitional
opportunities for the region’s workforce and develop professional
opportunities to upskill and reskill the incumbent workforce.
- $83 million in state funds for the California State
University, Bakersfield (CSUB) Energy Innovation Center, an
incubator for science, research and technology that will bring
together CSUB faculty and students, in partnership with industry
and community leaders. The Center will contain CSUB’s California
Energy Research Center, expanded fabrication lab, faculty and staff
offices, and serve as the home base to up to 30 degree programs of
the Schools of Natural Science, Mathematics and Engineering and
Extended Education and Global Outreach.
- A $2.5 million pledge by CRC to fund Kern County initiatives
including the establishment of the CRC Carbon Management
Institute with Kern CCD, a first-of-its-kind initiative that
will empower local private and public partnerships to lead the way
in defining how collaboration between education and industry can
positively impact communities; the launch of the CRC Energy
Transition Lecture Series at CSUB on relevant topics and
emerging issues related to CCS and technologies that will lead the
way to achieving a net zero future, and the establishment of the
CRC Carbon TerraVault Scholarship to help provide CSUB
students with academic opportunities.
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, CSUB, Taft
College, and the University of California, Los Angeles (UCLA)
Institute for Carbon Management; National Labs – Lawrence
Livermore National Laboratory (LLNL), Livermore Lab Foundation
(LLF), National Renewable Energy Laboratory (NREL), and Pacific
Northwest National Laboratory (PNNL); Community – B3K
Prosperity, CAPK, 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), 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).
“Governor Newsom has set the most ambitious targets for
California of any state in the nation – and in the world – to
rapidly and permanently remove carbon from the atmosphere, and
California DAC Hubs will be essential to helping achieve the
Governor’s goals,” said Mac McFarland, CRC President and Chief
Executive Officer. “According to the International Energy Agency
(IEA), carbon removal technologies such as DAC+S are expected to be
critical in the transition to a decarbonized economy. We have an
unprecedented consortium of project participants who are committed
to working together to create DAC+S hubs across the state,
accelerate the energy transition and benefit working families
throughout our California communities.”
“The ‘community’ in community colleges is a real answer for good
jobs with equity and the development of the future energy
workforce,” said Sonya Christian, Chancellor, Kern Community
College District. “Kern CCD is well-positioned to do the important
work to ensure the California DAC Hub project is grounded in
authentic partnerships between community and industry and provides
educational and workforce opportunities that will lead to economic
mobility for the people and communities we serve.”
“Preserving affordability and reliability on the path to
net-zero rests on deploying every tool in the carbon reduction
toolbox,” said Neva Espinoza, Vice President, Energy Supply and
Low-Carbon Resources, EPRI. “Advancing the development of direct
air capture technology through collaborative innovation could bring
net-zero one step closer by offsetting emissions from
hard-to-decarbonize sources.”
“It is very exciting that these organizations are working
together cross-functionally to not only provide a carbon removal
and storage solution but doing so using low carbon energy and
providing economic benefits to California communities,” said
California State Treasurer Fiona Ma. “This project is more than a
shared DAC infrastructure project; it serves as a hub model that
delivers community benefits and jobs for other parts of the U.S.
that also face climate change induced challenges.”
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.
Guggenheim Securities, LLC is acting as financial advisor for
CRC in connection with the formation of CTV Direct and the
development of the California DAC Hub consortium.
About Carbon TerraVault Holdings
Carbon TerraVault Holdings, LLC (CTV), a subsidiary of CRC,
provides services that include the capture, transport and storage
of carbon dioxide for its customers. CTV is engaged in a series of
CCS projects that inject carbon dioxide (CO2) captured from
industrial sources into depleted underground reservoirs and
permanently store CO2 deep underground. CTV Direct is a wholly
owned subsidiary of CTV focused on direct air capture. For more
information, visit www.carbonterravault.com.
About EPRI
Founded in 1972, EPRI is the world's preeminent independent,
non-profit energy research and development organization, with
offices around the world. EPRI's trusted experts collaborate with
more than 450 companies in 45 countries, driving innovation to
ensure the public has clean, safe, reliable, affordable, and
equitable access to electricity across the globe. Together, we are
shaping the future of energy.
About Kern Community College District
Kern Community College District (Kern CCD) serves more than
33,000 students in communities over 24,800 square miles in parts of
Kern, Tulare, Inyo, Mono and San Bernardino counties through the
programs of Bakersfield College, Cerro Coso College, and
Porterville College.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that we believe to be
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements other than historical facts
are forward-looking statements, and include statements regarding
our future financial position, business strategy, projected
revenues, earnings, costs, capital expenditures and plans and
objectives of management for the future. Words such as “expect,”
“could,” “may,” "anticipate,” “intend,” “plan,” “ability,”
“believe,” “seek,” "see,” “will,” “would,” “estimate,” “forecast,”
“target,” “guidance,” “outlook,” “opportunity” or “strategy” or
similar expressions are generally intended to identify
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those expressed in, or implied by, such
statements. Although CRC believes the expectations and forecasts
reflected in our forward-looking statements are reasonable, they
are inherently subject to numerous risks and uncertainties, most of
which are difficult to predict and many of which are beyond our
control. No assurance can be given that such forward-looking
statements will be correct or achieved or that the assumptions are
accurate or will not change over time. Particular uncertainties
that could cause our actual results to be materially different than
those expressed in our forward-looking statements include, but are
not limited to: legislative or regulatory changes, including those
related to direct air capture and the availability of related tax
credits; our ability to successfully develop and finance direct air
capture projects, including our ability to obtain funding from the
federal government and other financing sources; availability or
timing of, or conditions imposed on, permits and approvals
necessary for direct air capture and other carbon management
projects; and the other risks and uncertainties set forth in the
CRC’s Annual Report on Form 10-K for the year ended December 31,
2021 (especially in Part I, Item 1A. Risk Factors and Part II, Item
7. Management’s Discussion and Analysis of Financial Condition and
Results of Operations) and in the CRC’s other filings with the SEC.
There may be other factors of which CRC is not currently aware that
may affect matters discussed in the forward-looking statements and
may also cause actual results to differ materially from those
discussed. CRC does not assume any obligation to publicly update or
supplement any forward-looking statement to reflect actual results,
changes in assumptions or changes in other factors affecting these
forward-looking statements other than as required by law. Any
forward-looking statements speak only as of the date hereof or as
of the dates indicated in the statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230207005539/en/
Richard Venn (Media) 818-661-6014 Richard.Venn@crc.com
Joanna Park (Investor Relations) 818-661-3731
Joanna.Park@crc.com
California Resources (NYSE:CRC)
Gráfico Histórico do Ativo
De Fev 2024 até Mar 2024
California Resources (NYSE:CRC)
Gráfico Histórico do Ativo
De Mar 2023 até Mar 2024