Verde Clean Fuels (Verde) has entered into a Carbon Dioxide Management Agreement (CDMA) with Carbon TerraVault JV HoldCo, LLC (CTV JV), a carbon management partnership formed by TerraVault, a California Resources Corporation (CRC) subsidiary, and Brookfield Renewable.
Under the agreement, CRC will lease 50 acres of land at its Net Zero Industrial Park in Kern County, California to Verde to build a new renewable gas facility that uses liquid fuels technology to convert biomass and other agricultural waste feedstock into renewable gasoline. Once operational, the facility is expected to produce nearly 21,000 gallons of renewable gas each day, supporting California’s transportation decarbonization efforts.
“We believe our proprietary technology and scientific approach will further enable California’s consumers of gasoline to seamlessly and materially participate in the critical decarbonization of our atmosphere and help achieve California’s climate goals,” said Ernest Miller, Chief Executive Officer of Verde.
The agreement will also allow CTV JV to permanently sequester a minimum of 100,000 metric tons per year of associated carbon dioxide at the CTV I carbon storage vault in exchange for an injection fee on a per-metric-ton basis.
“Our partnership with CTV marks a significant step towards fulfilling our domestic growth ambitions and represents a concrete pathway to decarbonizing the transportation sector,” added Miller. “By teaming up with the leading carbon management business in the U.S., we are poised to make a substantial impact.”