November 7, 2023. California Resources Corporation (CRC) announced Carbon TerraVault JV HoldCo, LLC (CTV JV) has entered into a storage only Carbon Dioxide Management Agreement (CDMA) with NLC Energy LLC (NLCE), a company that designs, builds, owns, and operates renewable natural gas (RNG) facilities that convert organic waste into useful commodities like clean energy, organic nutrients, clean water, organic liquid carbon dioxide, and dry ice, to sequester a minimum of 150,000 metric tons per year (MTPA) of carbon dioxide (CO2) at the CTV I reservoir.
The CDMA expects NLCE will build a new waste to energy production facility at CTV Clean Energy Park at Elk Hills. This new facility is expected to produce up to 7,000 million British thermal units (MMBtu) per day of RNG from biomass and other agricultural waste feedstock to provide decarbonized energy to other companies’ green technology facilities located at the Net Zero Park, and sell into the California market, further educing the carbon intensity of the state’s hard-to-abate sectors.
“This project highlights the value proposition of our CTV Clean Energy Park and its important role within Carbon TerraVault’s strategy,” said Francisco Leon, CRC’s President and Chief Executive Officer. “We welcome NLCE as a trusted partner in developing and furthering California’s decarbonization efforts and supporting Kern county’s ambitions to become the leading carbon sequestration area in the state.”
“Low-carbon, renewable natural gas replaces higher-carbon fuels that are used in transportation, utilities, and manufacturing,” said Bruce S. MacDonald, NLCE’s Founder and President. “Our clients and partners are continuing to make efforts to meet net-zero carbon emission objectives, and this exciting agreement with CTV opens a new set of growth opportunities for NLCE in California and helps decarbonize California’s essential industries.”