Amid the Golden State’s latest strike against oil and natural gas leasing, the state’s largest producer, California Resources Corp. (CRC), said it would launch a carbon capture, storage and sequestration (CCS) venture to curb 5 million metric tons/year (mmty).

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Last week, CRC disclosed a joint venture (JV) with Brookfield Renewable Partners LP, which contributed $500 million to the CCS endeavor with CRC subsidiary Carbon TerraVault. CRC CEO Mac McFarland explained during the second quarter earnings call the benefits of the carbon dioxide (CO2) storage JV. CRC would be majority owner in the JV with a 51% stake.

“Brookfield will contribute $10/ton for their 49% share of the storage assets as they are developed,” McFarland said. The JV is initially targeting the injection of...