California Resources Corporation Breaks Ground on California’s First Carbon Capture and Storage Project

Groundbreaking for Carbon TerraVault I Marks Major Milestone in California’s Clean Energy Future

KERN COUNTY, Calif., Oct. 16, 2025 (GLOBE NEWSWIRE) — California Resources Corporation (CRC) today hosted a groundbreaking ceremony for Carbon TerraVault I (CTV I), the Golden State’s first carbon capture and storage project, developed to reduce emissions and support the state’s path to carbon neutrality by 2045.

CRC President and CEO Francisco Leon and CTV Holdings Managing Director Chris Gould were joined by a diverse group of state and community leaders at the Elk Hills Field in Kern County to celebrate this historic milestone.

“Today’s groundbreaking is the result of years of vision, planning and collaboration,” Leon said. “CTV I is just the beginning — we’re proud to lead the way in building California’s carbon management economy and deploying proven climate solutions at scale.”

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As a cornerstone of California’s emerging carbon capture and storage (CCS) industry, CTV I will utilize existing facilities at CRC’s Elk Hills as a dedicated CO₂ storage site capable of storing up to 1.6 million metric tons of CO₂ annually, with a total storage potential of 38 million metric tons in the 26R reservoir. First injection is planned for early 2026.

“CTV I is a model for what’s possible when industry, government and communities align around shared sustainability goals,” Gould said. “Our company is deeply rooted in Kern County, and we are committed to ensuring this project is safe and effective while also creating high-quality jobs in the Central Valley.”

CTV I is part of the Carbon TerraVault Joint Venture between CRC and Brookfield Asset Management Ltd.. As the first facility in California to receive final Class VI permits from the U.S. Environmental Protection Agency (EPA) and to earn unanimous approval from the Kern County Board of Supervisors, this project sets a new standard for CCS deployment in the state.

“Carbon capture is a critical part of Brookfield’s energy investments in the United States,” said Craig Frenette, Senior Vice President at Brookfield. “This project adds to over half a trillion dollars we have invested nationwide in the infrastructure that underpins the American economy.”

“CTV I represents a major step in California’s CCS leadership, one where innovation and opportunity go hand in hand,” said Dr. Steven Cliff, Executive Officer of the California Air Resources Board. “This project proves that we don’t have to choose between good jobs and clean air — we can have both.”

“Taft and West Kern have been the hub of energy innovation and emerging technology integration for over 115 years,” said Taft Mayor Dave Noerr. “This project is a furtherance of our commitment to power the economy, support modern quality of life and maintain our leadership role in environmental responsibility.”

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

About Carbon TerraVault

Carbon TerraVault (CTV), CRC’s carbon management business, is developing services to capture, transport and permanently store CO₂ for its customers. CTV is engaged in a series of proposed CCS projects to inject CO₂ captured from industrial sources into depleted reservoirs deep underground for permanent sequestration.

About Carbon TerraVault Joint Venture

The Carbon TerraVault Joint Venture (CTV JV) is a carbon management partnership focused on CCS development formed between Carbon TerraVault I, LLC, a subsidiary of CRC, and Brookfield, to develop both infrastructure and storage assets required for CCS development in California. CRC owns 51% of CTV JV with Brookfield owning the remaining 49% interest.

About Brookfield

Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across infrastructure, renewable power and transition, private equity, real estate, and credit. We invest client capital for the long term with a focus on real assets and essential service businesses that form the backbone of the global economy.

For more information, please visit www.brookfield.com.