California Prepares to Launch Its First Carbon Capture and Storage Facility at Elk Hills This Spring
Carbon TerraVault has completed construction of carbon capture equipment at Elk Hills and targets first CO2 injection in spring 2026, marking a milestone for California's carbon management ambitions.
Overview
California is on the verge of launching its first permitted carbon capture and storage operation. Carbon TerraVault, a subsidiary of California Resources Corporation, has completed construction of carbon capture equipment at the Elk Hills Cryogenic Gas Plant in Kern County and is now commissioning the facility ahead of a targeted first CO2 injection in spring 2026, according to a company update published on March 2.
The project, known as Carbon TerraVault I (CTV I), will inject carbon dioxide into the depleted 26R reservoir at Elk Hills Field, located approximately 20 miles west of Bakersfield. It represents the first carbon capture and storage facility in California to secure Class VI underground injection permits from the U.S. Environmental Protection Agency.
Regulatory Foundation
The EPA issued four Class VI permits to Carbon TerraVault in December 2024, authorizing construction of four deep injection wells reaching depths exceeding one mile into the Monterey Formation. According to the EPA’s announcement, the permits marked the first Class VI wells authorized in California and the first issued by the agency’s Pacific Southwest Region.
The permits require the operator to plug 200 abandoned wells in the area before injection begins and to maintain $30 million in financial responsibility. Regional Administrator Martha Guzman stated that the permit includes “important features such as continuous monitoring for carbon dioxide leaks, with that monitoring data made available to the public.”
Scale and Partnerships
At full capacity, CTV I is expected to store approximately 1.5 million metric tons of CO2 per year over a projected 26-year operational lifetime, totaling nearly 38 million metric tons. The broader Carbon TerraVault portfolio has submitted applications to the EPA for 352 million metric tons of total CO2 storage capacity across multiple reservoirs.
California Resources Corporation holds a 51 percent stake in the CTV joint venture, with Brookfield holding the remaining 49 percent. The company has signed memoranda of understanding with industrial and power partners for a combined 6.8 million metric tons per annum of CO2 storage capacity.
Francisco Leon, CRC’s president and chief executive, said in the March update that “CTV is emerging as the premier carbon management platform essential to helping California achieve its ambitious climate goals.”
Technical Infrastructure
French industrial group Vallourec is supplying advanced tubular solutions for the project, including corrosion-resistant alloy pipe with premium connections and its CLEANWELL dope-free technology, according to a separate announcement on March 9. The deployment marks the first onshore CCS use of Vallourec’s CLEANWELL system, which eliminates the need for traditional pipe dope compounds during well assembly.
Chris Gould, CTV’s managing director, said the project “represents a critical step toward advancing the CCS industry to meaningful scale” and supports California’s goal of achieving carbon neutrality by 2045.
Investment and Outlook
CRC invested $33 million in carbon management projects during 2025 and expects to invest $12 million to $20 million in 2026, with an additional $25 million to $35 million in other operating expenses related to its carbon management platform.
The spring 2026 injection remains subject to final EPA approval. If it proceeds on schedule, Carbon TerraVault I will become the first operational CCS facility in California, adding to a small but growing number of Class VI-permitted projects nationwide as the United States expands its carbon management infrastructure.