Project Intends to Advance California’s Climate
Leadership and Transformative Benefits to Local Communities
Carbon TerraVault Holdings, LLC (CTV), a subsidiary of
California Resources Corporation (NYSE: CRC), today announced that
the California Direct Air Capture (DAC) Hub has been selected to
receive $11.8 million in funding from the U.S. Department of Energy
(DOE) under its Regional DAC Hubs Initiative related to the
proposed development of California’s first full-scale DAC plus
storage (DAC+S) network of regional hubs. DAC+S is a solution that
is intended to remove and then permanently store atmospheric carbon
dioxide (CO2) using low carbon emission energy and provide economic
benefits to surrounding communities. This first DOE amount will be
used to perform Front End Engineering Design (FEED) studies in 2024
on the proposed DAC facilities in Kern County, followed up with
additional funding requests and planned development and
construction potentially beginning in 2025. With selection for the
DOE funding, the California DAC Hub is also eligible for additional
funding from the California Energy Commission.
The California DAC Hub is being led by CTV Direct, LLC, a wholly
owned subsidiary of CTV focused exclusively on DAC+S; Kern
Community College District (KernCCD), the community benefits plan
lead; and EPRI, a non-profit energy research and development
institute. The California DAC Hub consortium is comprised of
approximately 40 organizations from across industry, community,
tribes, government, technology, national labs, academia, labor, and
workforce development. The California DAC Hub is expected to help
accelerate the Golden State’s climate leadership and achieve its
carbon neutrality goal. It also plans to prioritize surrounding
under-represented California communities through transformative
benefits potentially including:
- Helping optimize 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
- Science, technology, engineering, and math (STEM) and energy
transition education programs
The California DAC Hub consortium is pursuing funding to develop
a network of DAC+S hubs across the state under the DOE’s Regional
DAC Hubs Initiative, as outlined under the $3.5 billion Funding
Opportunity Announcement (FOA), to accelerate the commercialization
of atmospheric CO2 removal via integrated capture, processing,
transport, and secure permanent 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.
The first hub is planned to launch in Kern County, California,
and the consortium will look to expand to other locations across
the state. Each hub is expected to provide tangible energy
transition benefits to surrounding communities, such as high-paying
and permanent jobs and workforce development programs for this
cutting-edge industry, to help California progress toward its 2030
and 2045 carbon removal goals.
"We are thrilled with being awarded this DOE funding to create
California DAC Hub and help California meet its ambitious climate
goals," said Chris Gould, CRC Chief Sustainability Officer and CTV
Managing Director. "Innovative solutions such as DAC+S are
important to help decarbonize our economy and I cannot imagine a
better group than our California DAC Hub consortium, which is made
up of amazing and passionate organizations who are committed to
working together and excited to take the next step to accelerate
the energy transition, and benefit working families throughout our
California communities."
"KernCCD is honored to lead the community benefits plan through
the lens of equity," said Zav Dadabhoy, KernCCD Deputy Chancellor.
"As we embrace the technology that will create the jobs of the
future, it is incumbent to ensure that the wealth created in the
process benefits the people and communities where the projects are
located. By working with employers to create good jobs and career
pathways, we ensure two-way engagement, transparency and that the
benefits are invested to support a clean energy economy, especially
in our rural areas. Congratulations to the California DAC Hub team
for bringing together community partners, tribes, national labs,
technology, academia, federal, state and local officials, and
industry to make this happen."
"The next phase of the energy transition will require both
emerging low-carbon technologies and the infrastructure to support
them," said Neva Espinoza, EPRI Vice President, Energy Supply and
Low-Carbon Resources. "This consortium aims to drive fundamental
advancements on both fronts through a collaborative focus on direct
air capture technology and the CO2 sequestration required to
realize its carbon reduction benefits."
Led by CTV Direct, KernCCD and EPRI, the California DAC Hub
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 – African American Network of Kern County
(AANKC), B3K Prosperity, Community Action Partnership of Kern
(CAPK), Grandma Whoople Enterprises, Greater Bakersfield Chamber of
Commerce, KernCCD, 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), The Open Door Network, Tejon Indian
Tribe, and the West Side Recreation & Park District
- Government – City of Bakersfield, Kern Economic
Development Corporation (KEDC), and the West Kern Water District
(WKWD)
- 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)
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 the participation of organizations and
local communities.
Thank you to the organizations and legislators that support DAC
and the California DAC Hub.
"California is pioneering new solutions to fight climate
change," said California Governor Gavin Newsom. "It’s not enough to
cut emissions – we have to go further by actively removing carbon
pollution from the atmosphere. This project will be the first of
its kind in our state and will help us meet our world-leading
climate goals."
"This Department of Energy award is an important first step to
help meet California’s climate goals," said California State
Treasurer Fiona Ma. "The California DAC Hub community benefits plan
developed in partnership with local communities will deliver
economic and environmental benefits. I look forward to working with
the California DAC Hub Consortium on this project which will serve
as a HUB model across California."
"The investment and high road job opportunities that come with
the grant of a Direct Air Capture Hub will allow California to
build upon our current emission reduction strategies and reach our
climate change goals with greater determination," said California
State Senator Anna M. Caballero. "With its location in the Central
Valley, the Direct Air Capture Hub will both be a boost to our
local economy and launch the next phase of carbon reduction climate
action in California and the nation. I look forward to supporting
its implementation and working to ensure we use this opportunity to
its utmost potential."
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 (KernCCD) 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230811998495/en/
Richard Venn (Media) 818-661-6014 CRC.Communications@crc.com
Joanna Park (Investor Relations) 818-661-3731
Joanna.Park@crc.com
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