The first blue hydrogen project in California was recently announced. It is called Lone Cypress Hydrogen Project and will be producing 30 tons of blue hydrogen per day, with the potential to be expanded to 60 tons per day.
California Resources Corporation has announced the Carbon Dioxide Management Agreement for the construction and operation of the blue hydrogen project that is between Carbon TerraVault JV Holdco and Lone Cypress Energy Services – an independent energy company focused on the development of low-carbon hydrogen generation facilities and energy infrastructure.
Around 100,000 metric tons of carbon dioxide per annum from the plant will be captured and sequestered. When expanded, it could store up to 200,000 metric tons of CO2 per year.
Blue hydrogen is the name of hydrogen that is derived from natural gas which usually is an emissions-intensive process. The greenhouse gases though are handled with carbon capture and storage technology so it could be categorized as a net zero-carbon intensity fuel.
“We are excited to be at the forefront of the energy transition in California. CRC is enabling the net zero energy economy by partnering with Lone Cypress to site a brand-new hydrogen facility at our Elk Hills Field as well as offering permanent CO2 sequestration through Carbon TerraVault,” said Mac McFarland, California Resources Corporation’s President and CEO.
The project’s final investment decision is targeted in late 2023 and full operations are expected by the end of 2025. That is in line with the Carbon TerraVault JV’s stated goal of the first injection in 2025.