California launches first permanent underground CO2 storage at Elk Hills Field

California Resources Corporation (CRC) has started injecting carbon dioxide underground at its Carbon TerraVault I (CTV I) project in Kern County, marking California's first permanent underground carbon storage operation.

Located at CRC’s Elk Hills Field, this facility captures CO2 from the company's cryogenic gas plant and deposits it into depleted oil and natural gas reservoirs situated more than one mile beneath the surface for long-term containment.

This development positions CRC among a limited group of global operators who have advanced carbon capture and storage (CCS) projects from the planning and permitting stages to active operation. The company stated that CTV I aims to establish a commercial market for industrial carbon storage within California and to support the state's objectives for carbon neutrality.

Turning Emissions Underground

CTV I comprises two depleted reservoirs known as “26R” and “A1-A2.” The 26R reservoir, at full operational capacity, is projected to store up to 1.46 million metric tons of CO2 annually, an amount CRC equates to removing nearly 350,000 vehicles from California roads each year. The reservoir’s total storage potential is estimated at 38 million metric tons.

Francisco Leon, CRC’s President and CEO, stated, “First injection at CTV I demonstrates that California can lead on climate solutions that are practical, scalable and cost-effective.”

The project has undergone extensive technical development and regulatory review involving both state and federal agencies. CRC noted that the geological formations used for storage have contained hydrocarbons for millions of years.

California Governor Gavin Newsom described the initiative as a significant advancement for the state’s climate strategy, saying, “This first-of-its-kind project in Kern County will permanently store carbon pollution underground for the first time in California’s history.”

CTV I-26R also became the first reservoir in California to obtain final Class VI permits from the U.S. Environmental Protection Agency (EPA), a crucial regulatory approval for geologic carbon storage projects.

Expanding Storage Capacity

CRC’s Carbon TerraVault carbon management business is working to develop a broader storage network throughout California. The company has submitted eight additional reservoirs for EPA Class VI permitting.

These projects collectively offer an estimated potential CO2 storage capacity of approximately 352 million metric tons.

Lauren Sanchez, Chair of the California Air Resources Board, commented, “Carbon capture, utilization, and storage is a critical piece of California’s climate solutions puzzle and an important tool we’re counting on to help achieve carbon neutrality.”

The Carbon TerraVault Joint Venture, a partnership between CRC and Brookfield, is developing the project. CRC holds a 51 percent stake, while Brookfield owns the remaining 49 percent.

Craig Frenette, Senior Vice President at Brookfield, said, “The first CO2 injection at CTV I marks an exciting milestone for carbon management in California.”

As part of a community benefits program, CRC has pledged over $1 million to support local initiatives in Kern County and plans to establish a Community Advisory Council in 2026 to engage with and address local community needs.