Carbon Storage Ties to California Power Generation
Oil and gas operators with CO2 sources in California should watch how carbon storage is paired with fuel cell power.
Updated on Nov. 2, 2026 in Oil and Gas
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Carbon TerraVault signed a non-binding memorandum of understanding with Bloom Energy to evaluate 1 gigawatt or more of solid-oxide fuel cell power paired with carbon capture and storage in California, and separately filed an EPA Class VI permit application for about 57 million metric tons of CO2 storage. The moves matter to oil and gas operators because they tie carbon storage capacity to power generation and industrial emitters across the state.
Why it matters
The company says the alliance structure is meant to speed commercialization of carbon capture and storage. The memorandum is not binding and depends on definitive agreements, a final investment decision, and EPA Class VI permits and other approvals.
Total submitted CO2 storage permit volumes reached about 409 million metric tons after the new 57 million metric ton filing, and third quarter 2026 operating revenues were $2 million against adjusted EBITDAX of $(8) million. The extraction provides no prior-period comparison, so the trajectory of these figures cannot be assessed from the source.
The players
Carbon TerraVault
A carbon capture and storage company operating permanent CO2 sequestration in a depleted reservoir in California.
Bloom Energy
A fuel cell manufacturer whose solid-oxide systems are being evaluated for power generation paired with carbon capture in California.
California Resources Corporation
An independent oil and gas producer in California that supplies CO2 to Carbon TerraVault from its Elk Hills Cryogenic Gas Plant and closed the Crimson acquisition.
The details
The memorandum targets solid-oxide fuel cell power generation paired with carbon capture and storage in California, and the power capacity under evaluation is 1 gigawatt or more. Carbon TerraVault I is already injecting CO2 into a depleted reservoir for permanent sequestration, drawing its supply from CRC's Elk Hills Cryogenic Gas Plant. The company also describes a potential CO2 pipeline system that would link its storage portfolio to industrial emission centers in Northern and Central California through the Crimson acquisition, which CRC has closed.
Timeline
Third quarter 2026 financial and operating results reported.
November 2, 2026: Bloom Energy memorandum of understanding and update announced.
Fourth quarter 2026 guidance projected capital investments of $0 to $2 million and other operating expenses of $4 to $12 million.
Market Landscape
Carbon TerraVault's permit filings and power-linked alliance place it in the EPA Class VI permitting process that governs geologic CO2 storage. Its position relative to competitors and the broader California carbon capture buildout is not described in the extraction.
Oil and gas operators with CO2 sources or storage interests in California should watch whether the Bloom Energy evaluation advances to definitive documents and whether EPA acts on the new Class VI application. Operators weighing carbon capture arrangements should consult qualified counsel and accountants before committing capital.
The takeaway
The key operating signal is that CO2 storage capacity is being linked to power generation and industrial emitters rather than standing alone. Operators should track the EPA permit decision on the 57 million metric ton application and any definitive agreement with Bloom Energy as the next concrete indicators.
Further reading
For broader context on how producers are positioning for carbon storage, see the Oil and Gas coverage.
Source note: This article includes information reported by The Manila times.
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