A blue hydrogen plant at the Elk Hills Field in Kern County. The Lone Cypress Hydrogen Project aims to be California’s first blue hydrogen facility producing 30 tons per day and has the potential to expand to 60 tons per day of blue hydrogen with up to 200,000 MT of CO2 sequestration per annum

Carbon TerraVault JV Holdco — a JV between Brookfield Renewable and California Resources Corporation — and Lone Cypress Energy Services have reached an agreement to sequester 100,000 metric tons (MT) of carbon dioxide (CO2) per annum from the plant. The CO2 would be stored in Carbon TerraVault I (CTV I).

The Lone Cypress Hydrogen Project will employ a proprietary steam methane reformation technology with an integrated carbon capture system. The facility is expected to produce 30 tons per day of hydrogen at startup with the ability to expand to 60 tons per day of hydrogen which is under consideration. This translates to an initial 100,000 MT per annum of associated CO2 that will be permanently sequestered through CTV or 200,000 MT per annum of CO2 that will be permanently sequestered if the project is expanded.

Project FID is targeted in late 2023, with full operations by the end of 2025, in line with the CTV JV’s stated goal of first injection in 2025.

The CDMA provides Lone Cypress with access to 50 surface acres at the Elk Hills Field with the option for an additional 50 acres if expansion to a 60 ton per day project is pursued.

Lone Cypress anticipates reaching a final investment decision before the end of 2023.