Carbon TerraVault to manage 1 million tons CO2 for cement firm

Published 03/03/2025, 14:46
Carbon TerraVault to manage 1 million tons CO2 for cement firm

LONG BEACH, Calif. - California Resources Corporation (NYSE:CRC), a $4.08 billion market cap energy company with $2.59 billion in annual revenue, and its carbon management subsidiary, Carbon TerraVault, announced a partnership with National Cement Company of California Inc. to facilitate the transportation and sequestration of up to one million metric tons of carbon dioxide (CO2) emissions annually. According to InvestingPro analysis, CRC maintains a healthy financial position with a Fair rating and operates with moderate debt levels. This initiative is part of the Lebec Net Zero project, aimed at producing carbon-neutral cement at National Cement’s facility in Lebec, Kern County, California.

The Memorandum of Understanding (MOU) includes plans for Carbon TerraVault to develop solutions for transporting and securely storing CO2 emissions captured from National Cement’s plant. The captured CO2 is slated to be stored in Carbon TerraVault’s underground reservoirs, a move aligned with California’s industrial decarbonization efforts.

The Lebec Net Zero project is expected to be California’s first net-zero cement facility, incorporating carbon capture technology and using biomass fuel from agricultural byproducts. The initiative aligns with Kern County’s vision for carbon management and is anticipated to provide economic growth, job creation, and tax benefits for local communities. The project, which is one of 33 selected by the U.S. Department of Energy for funding under the Industrial Demonstrations Program, is expected to commence operations in 2031, pending necessary approvals.

Francisco Leon, President and CEO of CRC, highlighted the partnership’s role in advancing decarbonization solutions within California’s industrial sector. Eric Holard, CEO of National Cement, expressed enthusiasm for the transformative project and the collaboration with Carbon TerraVault.

With this MOU, Carbon TerraVault’s carbon capture and sequestration projects under consideration now total nearly 9 million metric tons per annum of CO2 emissions. This positions the company as a leader in industrial decarbonization and carbon storage solutions. Currently trading near its 52-week low and offering a 3.47% dividend yield, CRC presents an interesting opportunity for investors focused on both environmental impact and value. For detailed analysis and additional insights, including 8 more exclusive ProTips, visit InvestingPro, where you can access comprehensive research reports covering 1,400+ top US stocks.

Carbon TerraVault is focused on capturing, transporting, and permanently storing CO2 for its customers, while California Resources Corporation is an independent energy and carbon management company dedicated to environmental stewardship and responsible energy sourcing. National Cement Company produces cement and concrete, striving to minimize its environmental footprint.

This news is based on a press release statement.

In other recent news, California Resources Corporation has been in the spotlight due to several notable developments. Truist Securities maintained a Buy rating on the company, with a price target of $75.00, citing record free cash flow and advancements in Carbon Capture and Storage (CCS) as key factors. The firm anticipates progress in permitting processes in Kern County, which could enhance production growth. Additionally, Truist Securities initiated coverage of California Resources, emphasizing its diverse operations and the recent approval of California’s first CCS project. The company also signed a memorandum with Net Power to develop ultra-low emission power plants.

JPMorgan, however, initiated coverage with a Neutral rating and a $63.00 price target, expressing concerns over oil price fluctuations and regulatory uncertainties. Meanwhile, Citi adjusted its price target to $62.00 from $65.00, maintaining a Buy rating despite delays in sequestration timing. Citi’s analysis considers new growth opportunities in the carbon capture business, projecting 10 million metric tons per annum of sequestration by 2032. The company’s diversified portfolio continues to attract attention from investors and analysts alike.

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