Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you an email with your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Electric Power | Natural Gas | Oil

California's Elk Hills carbon capture plant gets backing from oil and gas industry fund

Commodities | Agriculture | Grains | Energy | Electric Power | LNG | Natural Gas | Oil | Crude Oil | Metals | Coronavirus

Market Movers Americas, June 29-July 3: Rig count rises, but pandemic continues to pressure US commodities

Electric Power

Platts M2MS-Power

Energy | Electric Power | Electric Power Risk

Nodal Trader Conference, 13th Annual

Natural Gas

US EIA trims gas production forecasts once again on lower prices, curtailments

California's Elk Hills carbon capture plant gets backing from oil and gas industry fund


Elk Hills project aims to remove carbon dioxide from burning natural gas

Carbon capture project has received funding from US Department of Energy

Climate Investment fund backed by oil and gas majors from Chevron to Aramco

Riyadh — The Oil & Gas Climate Initiative's $1 billion-plus Climate Investments fund announced this week it's backing a carbon capture plant to be operated by California Resources Corp. to remove carbon dioxide from its power plant, store it and use it to enhance oil recovery at its Elk Hills field, which accounts for more than half of the state's natural gas production.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The project is scheduled to come on stream in 2024 to remove approximately 1.5 million mt/year of carbon dioxide from burning natural gas at the Elk Hills power plant, Michael Ryan, vice president of carbon capture, use and storage (CCUS) at OGCI Climate Investments, told S&P Global Platts at a CCUS conference in Riyadh this week. He declined to provide the amount of funding.

"The acceleration of CCUS depends upon strong collaboration among policy makers, investors, regulators and developers," Ryan said. "It is exciting to be part of this new and growing CCUS economy in leading CI's investments in CCUS projects and supporting OGCI's development of large CCUS hubs."

The Elk Hills carbon project has received funding from the US Department of Energy and qualifies for a credit under 45Q of the Internal Revenue Service code, Ryan said.

The OGCI Climate Investment fund is backed by major IOCs and NOCs including Saudi Aramco, BP, Chevron, Shell and Total. Elk Hills is the fund's 16th investment and the sixth CCUS investment. Its first project investment was a hub of industrial operations in Teesside, England. It also has CCUS technology investments in low-carbon concrete and cement, polyoils from carbon dioxide and solid-state carbon capture, Ryan said.

The onshore Elk Hills field, located 20 miles west of Bakersfield, produced 52,000 b/d of oil equivalent from more than 3,000 wells in 2018, the latest year available on its website. The field is the largest natural gas and natural gas liquids field in California, generating over half of the state's natural gas production.

Elk Hills Power LLC is a joint venture of CRC and Ares Management LP. It operates gas processing facilities with a combined capacity of 520 MMcf/day of gas. It also operates a 550 MW natural gas combined-cycle power plant that supplies electricity to the Elk Hills field and supplies excess power to a local utility and California's electricity grid.