Capital Power signs MOU with California Resources

Executive Summary

• California Resources Corp. (CRC) and its carbon management subsidiary, Carbon TerraVault (CTV), have signed a non-binding Memorandum of Understanding (MOU) with Capital Power Corp. to explore carbon capture and sequestration (CCS) solutions for Capital Power's La Paloma generation facility in Kern County, California.
• The partnership aims to evaluate and develop CCS infrastructure, with CTV potentially serving as the exclusive transportation and sequestration provider for up to 3 million metric tons per annum (mmtpa) of captured CO2.
• The parties will also jointly evaluate potential data center sites, power infrastructure needs, regulatory permitting, and further integration opportunities to support California's decarbonization goals.

Key Details

• Parties Involved: California Resources Corp. (CRC) / Carbon TerraVault (CTV) and Capital Power Corp.
• Agreement Type: Non-binding Memorandum of Understanding (MOU).
• Target Facility: La Paloma generation facility, a 1.1-gigawatt (GW) natural gas combined-cycle plant located in Kern County, California.
• Scope of Services: CTV intends to evaluate serving as the exclusive transportation and sequestration services provider.
• Capacity Potential: Up to 3 million metric tons per annum (mmtpa) of captured carbon dioxide (CO2).
• Additional Evaluation Areas: Joint evaluation of potential data center sites, power infrastructure needs, regulatory permitting, and further integration opportunities.
• Conditions Precedent: The projects are subject to the negotiation of definitive documents, a final investment decision by the parties, and receipt of EPA Class VI permits and other regulatory approvals.

Notable Quotes

• Francisco Leon, CRC President and CEO: "This MOU with Capital Power represents a promising opportunity to advance California's decarbonization goals and demonstrates the growing demand for reliable, scalable carbon management solutions... By supplementing Capital Power's generation capabilities with CRC's strategically located storage infrastructure and technical expertise, we can help accelerate low-carbon power generation across the Golden State."
• Avik Dey, Capital Power President and CEO: "Partnering with Carbon TerraVault highlights our commitment to practical, technology-driven solutions that accelerate the transition to a lower-carbon energy future... Together, we hope to drive innovation that makes sustainable energy more achievable."