Carbon TerraVault and Net Power Sign MOU to Develop Low Carbon, Reliable Power Solutions in California

Net Power’s Greenfield Facilities Initially Target up to 1GW of Reliable, Low Carbon Baseload Power

Carbon TerraVault Expected to Transport and Sequester up to 3.6 Million Metric Tons of CO2 Emissions Annually

LONG BEACH, Calif. and DURHAM, N.C., Dec. 09, 2024 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC), and its carbon management business, Carbon TerraVault (CTV), today 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. The partnership aims to advance carbon capture and sequestration technology while addressing California’s power needs.

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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 plan includes the initial deployment of up to 1 gigawatt (GW) of power capacity from Net Power’s modular plants, enabling the sequestration of up to 3.6 million metric tons of CO2 annually.

The partnership is expected to enable the state to reduce greenhouse gas emissions and provide new, reliable energy sources. Net Power’s plants are designed to generate consistent power while virtually eliminating carbon emissions, achieving near-zero levels of nitrogen oxides (NOx) and sulfur oxides (SOx).

Francisco Leon, CRC’s President and Chief Executive Officer, said, “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. 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 CCS projects under consideration total approximately 7.8 MMTPA of CO2 emissions, potentially enabling up to 2.1 GWs of low-carbon power capacity in California.

1This MOU is a non-binding collaboration agreement that is subject to certain conditions precedent. The consummation of the project is subject to negotiation of definitive documents, a final investment decision by the parties, and receipt of EPA Class VI permits and other regulatory approvals.

About Carbon TerraVault

Carbon TerraVault, CRC’s carbon management business, is developing services to capture, transport, and permanently store CO2 for its customers. CTV’s projects aim to sequester CO2 from industrial sources into depleted reservoirs deep underground for permanent storage. For more information, visit carbonterravault.com.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC focuses on environmental stewardship while providing responsibly sourced energy and maximizing the value of its assets for decarbonization projects, including CCS initiatives. For more information, visit www.crc.com.

About Net Power

Net Power (NYSE: NPWR) is an energy technology company developing its proprietary Net Power Cycle, which transforms natural gas into ultra-low emissions, reliable, and affordable power. Net Power is dedicated to deploying utility-scale plants worldwide, offering innovative and sustainable energy solutions. For more information, visit www.netpower.com.