1. CRC signed MOU with Middle River Power for carbon sequestration services. 2. Focus on two MRP power facilities with significant CO₂ emissions. 3. This is CRC's first MOU for brownfield carbon management services. 4. Legislative support enhances CRC's position in carbon transport and storage. 5. CRC's CCS approaches show practical viability for the energy sector.
FAQ
Why Bullish?
The MOU indicates CRC's strategic expansion in a high-demand carbon market. Previous partnerships improved CRC's market presence, benefitting share prices.
How important is it?
The article addresses CRC's growth strategy in a pivotal market, directly impacting investor confidence and perceived company value.
Why Short Term?
Immediate collaboration with MRP can lead to quicker implementation and revenue generation. Sustainable initiatives generally garner positive investor sentiment in the near term.
California Resources Corporation Partners with Middle River Power for Carbon Management Solutions
LONG BEACH, Calif., Dec. 16, 2025 (GLOBE NEWSWIRE) — California Resources Corporation (NYSE: CRC) has announced a significant partnership with Middle River Power, LLC (MRP), aimed at advancing carbon transportation and sequestration services for MRP's power facilities in California. This agreement marks CRC’s first Memorandum of Understanding (MOU) to provide carbon management services specifically for a brownfield power facility in Northern California.
Key Details of the Partnership
The collaboration between CRC and MRP focuses on the development of carbon capture and sequestration (CCS) solutions at two MRP power facilities:
- High Desert Plant: 850 megawatts (MW), located in Victorville, CA, with annual CO₂ emissions of up to 2.1 million metric tons per annum (MMTPA)
- San Joaquin Energy Center: 330 MW, located in Tracy, CA, contributing approximately 0.65 MMTPA of CO₂ emissions
Carbon TerraVault (CTV), CRC's carbon management division, will serve as the exclusive provider of CO₂ transportation and sequestration services for these facilities. Meanwhile, MRP is committed to the reliable operation of both power and CO₂ capture facilities, leveraging its experience in delivering optimized energy solutions.
Statements from Leadership
Francisco Leon, CRC President and CEO, emphasized the importance of this agreement, stating, “We continue to demonstrate the scalability and viability of our Power-to-CCS solution. This marks our third MOU with a brownfield power producer and highlights growing momentum across the power sector seeking practical and economically feasible decarbonization solutions in California.” He further noted that CRC is well-positioned to assist partners in meeting sustainability and reliability goals, especially following supportive legislative measures for carbon transport and storage.
Mark Kubow, CEO of Middle River Power, added, “At Middle River Power, we are committed to unlocking innovative pathways to cleaner, more reliable energy in California. This MOU with California Resources Corporation marks a strategic step forward in decarbonizing our existing generation infrastructure and helping the state achieve its ambitious climate and reliability goals.”
About California Resources Corporation
California Resources Corporation (CRC) is an independent energy and carbon management company focused on facilitating the energy transition while practicing environmental stewardship. With a commitment to responsibly sourced energy and maximizing the value of its assets, CRC is dedicated to developing CCS and other carbon-reducing projects.
Understanding Carbon TerraVault
Carbon TerraVault (CTV), part of CRC, focuses on providing essential services for capturing, transporting, and permanently storing CO₂. CTV is engaged in various CCS projects, aiming to inject captured CO₂ from industrial sources into deep underground reservoirs for permanent storage.
About Middle River Power
Middle River Power (MRP) is an independent power producer and asset management company committed to accelerating the energy transition. By integrating new technologies with under-utilized legacy generation assets, MRP delivers cleaner, reliable, and cost-effective energy solutions versatile enough to meet contemporary needs. In 2025, MRP was acquired by Partners Group, a leading firm in global private markets.
Looking Forward
This MOU, while a non-binding agreement, signifies a potential landmark collaboration in California's renewable energy landscape. The partnership is contingent on numerous conditions, including the negotiation of definitive documents and regulatory approvals.
CRC encourages stakeholders not to rely solely on forward-looking statements, as they carry inherent risks and uncertainties. Additional information on these risks can be found in CRC’s recent filings with the Securities and Exchange Commission (SEC).