California Resources Corporation (NYSE: CRC), and its carbon management business, Carbon TerraVault (CTV), announced the signing of a Memorandum of Understanding (MOU) with Net Power Inc. (NYSE: NPWR), to develop Net Power’s ultra-low emission power plants in California.
Under the terms of the MOU, the parties plan to conduct feasibility studies on locating Net Power’s facilities in proximity to CTV’s underground storage vaults, which would reduce carbon dioxide (CO2) transportation costs and midstream investments for CTV’s operations. The parties plan to facilitate the initial deployment of up to 1 gigawatt (GW) of power capacity from Net Power’s new modular plants in Northern California, resulting in up to 3.6 million metric tons per annum (MMTPA) of CO2 emissions for permanent sequestration in CTV’s nearby reservoirs. Each of Net Power’s utility-scale modular plants is expected to require less than 20 acres, generate up to 250 megawatts, and be deployable in multi-plant configurations.
The partnership is expected to enable the state to reduce greenhouse gas emissions and provide new, reliable energy sources. Net Power’s plants will be designed to generate reliable power while eliminating substantially all carbon emissions with near-zero air particulate and gaseous pollutants, including nitrogen oxides (NOx) and sulfur oxides (SOx). These projects would support California’s air quality standards and emissions goals.
“This partnership with Net Power combines our strategically located carbon storage and natural gas assets with California’s call for more clean power. We are solidifying our position as a leader in carbon management solutions in the Golden State,” said Francisco Leon, CRC’s President and Chief Executive Officer. “CRC is committed to advancing innovative clean energy solutions while attracting new investments to California. Together, we are working to meet our State’s critical power needs with new, reliable, and low carbon energy.”
Danny Rice, Net Power’s Chief Executive Officer, commented, “CTV is an industry leader in advancing responsible and safe carbon sequestration in California, and we look forward to collaborating with them and local stakeholders to responsibly unlock the full potential of CTV’s world-class assets. CTV possesses the resource potential to support the deployment of many Net Power facilities in California. This partnership can strengthen California’s pathway to achieve its environmental and energy goals while attracting new businesses that value 24/7 low carbon power – all made possible by our innovative ultra-low emissions technology in collaboration with CTV.”
This MOU marks Net Power’s initial entry into California’s power market and positions CTV as an early strategic partner in the deployment of Net Power’s power technology. Including this agreement, CTV’s carbon capture and sequestration (CCS) projects under consideration total approximately 7.8 MMTPA of CO2 emissions and if successful, would enable up to 2.1 GWs of new, low-carbon power capacity in California.
