CRC Expands Carbon Storage Business With Middle River Power Partnership

California Resources Corporation is expanding its push into carbon management with a new agreement aimed at reducing the emissions from some of California’s existing power generation fleet, underscoring growing interest in carbon capture as a tool for meeting the state’s climate goals without sacrificing reliability.

The Long Beach based energy producer said it has signed a memorandum of understanding with Middle River Power, an independent power producer with assets across the western U.S., to evaluate carbon capture, transportation and underground storage solutions for two gas fired plants in California. The facilities include the 850 megawatt High Desert plant in Victorville and the 330 megawatt San Joaquin Energy Center near Tracy, which together emit several million metric tons of carbon dioxide annually.

Under the agreement, California Resources, through its Carbon TerraVault unit, would act as the exclusive provider of carbon transportation and sequestration services for the Middle River facilities in the state.

Middle River would continue to operate the power plants and any associated capture equipment, while the companies assess technical feasibility, costs and regulatory pathways. The agreement is nonbinding and subject to further approvals and permitting.

CRC and Middle River Power Set Framework

The arrangement marks California Resources’ first proposed carbon management project tied to a Northern California power plant and its third such agreement with an owner of existing generation assets. The company has increasingly positioned itself as a service provider for emitters seeking to reduce their carbon footprint while keeping plants online.

The announcement comes as state lawmakers and regulators have moved to clarify rules around carbon transport and long term storage, steps the industry says are critical to unlocking investment.

California Resources has previously signed carbon capture related agreements with other power producers and industrial operators, betting that its legacy oil and gas infrastructure and subsurface expertise can be repurposed for carbon storage. Middle River, for its part, has said it is looking for ways to decarbonize existing assets as California relies on gas fired plants to balance intermittent renewable power.

Read more: California Breaks Ground On Its First Carbon Capture And Storage Project