California has begun permanent underground carbon dioxide storage for the first time after California Resources Corporation (CRC) announced the first CO2 injection at its Carbon TerraVault I (CTV I) project in Kern County.

The project, located at CRC’s Elk Hills Field, is now the state’s first operational carbon capture and storage (CCS) facility. It captures carbon dioxide from CRC’s cryogenic gas plant and injects it into depleted oil and natural gas reservoirs more than a mile below the surface for long-term storage.

The milestone places CRC among a small number of operators worldwide that have moved CCS projects from planning and permitting to active operations. The company said the project is designed to create a commercial market for industrial carbon storage in California while supporting the state’s carbon-neutrality goals.

CTV I consists of two depleted reservoirs known as “26R” and “A1-A2.” At full capacity, the 26R reservoir is expected to store up to 1.46 million metric tons of CO2 annually. CRC said that the amount is equivalent to removing nearly 350,000 cars from the road each year. The reservoir has a total storage potential of 38 million metric tons.

Turning emissions underground

“First injection at CTV I demonstrates that California can lead on climate solutions that are practical, scalable and cost-effective,” said CRC President and CEO Francisco Leon.

The project follows years of technical development and regulatory reviews involving state and federal agencies. According to CRC, the storage site uses geological formations that previously held hydrocarbons for millions of years.

California Governor Gavin Newsom called the project a major step for the state’s climate strategy.

“This first-of-its-kind project in Kern County will permanently store carbon pollution underground for the first time in California’s history,” Newsom said.

CTV I-26R also became the first reservoir in California to receive final Class VI permits from the U.S. Environmental Protection Agency (EPA), a key regulatory requirement for geologic carbon storage projects.

Expanding storage capacity

CRC’s carbon management business, Carbon TerraVault, is pursuing a larger storage network across the state. The company has submitted eight additional storage reservoirs for EPA Class VI permitting.

Together, those projects represent approximately 352 million metric tons of potential CO2 storage capacity.

“Carbon capture, utilization, and storage is a critical piece of California’s climate solutions puzzle and an important tool we’re counting on to help achieve carbon neutrality,” said California Air Resources Board Chair Lauren Sanchez.

The project is being developed through the Carbon TerraVault Joint Venture, a partnership between CRC and Brookfield. CRC owns 51 percent of the venture, while Brookfield holds the remaining 49 percent.

“The first CO2 injection at CTV I marks an exciting milestone for carbon management in California,” said Craig Frenette, Senior Vice President at Brookfield.

As part of a community benefits initiative, CRC has committed more than $1 million to support local programs across Kern County. The company also plans to establish a Community Advisory Council in 2026 to help identify and address local needs.

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