California Resources Targets First CO₂ Injection at Elk Hills CCS Project in Spring 2026
California Resources Corporation is preparing to begin CO₂ injection at its Elk Hills CCS project, positioning the facility to become California’s first operational carbon capture and storage development.
(P&GJ) — California Resources Corporation (CRC) is preparing to begin carbon dioxide injection at its Elk Hills carbon capture and storage (CCS) project in California, marking a milestone for the state’s emerging carbon management sector.
CRC’s Carbon TerraVault subsidiary recently completed construction of carbon capture equipment at the Elk Hills Cryogenic Gas Plant, which will serve as the capture source for the project. The company is now commissioning the facility and targeting first CO₂ injection into the nearby CTV I-26R storage reservoir in spring 2026, pending final regulatory approval.
The project is expected to become California’s first operational CCS development, capturing carbon dioxide from industrial operations and permanently storing it underground in depleted reservoirs. Carbon TerraVault is developing the project as part of a broader effort to create a scalable carbon management platform across the state.
“Over the last year, Carbon TerraVault moved from concept to project execution and will soon commence first CO₂ injection at Elk Hills – a first-of-its-kind project in California. CTV continues to build upon its leading carbon management platform, prioritizing project de-risking and partner alignment to advance innovative energy solutions in California,” said Francisco Leon, CRC's President and Chief Executive Officer.
The CCS facility will capture carbon dioxide produced at the Elk Hills gas plant and transport it to the nearby storage reservoir for permanent sequestration deep underground. CRC has submitted a CO₂ storage application to the U.S. Environmental Protection Agency covering 27 million metric tons of storage capacity, part of a broader portfolio of carbon storage sites under regulatory review.
The company is also working with industrial and power-sector partners to expand the project’s commercial pipeline of potential customers. CRC said it has already signed memoranda of understanding representing 6.8 million metric tons per year of potential captured emissions from industrial and power facilities.
CRC views Elk Hills as the first phase of a broader CCS build-out across California through its Carbon TerraVault platform. The company has also submitted additional Class VI permit applications and is seeking approvals to expand carbon storage capacity in the region.
Construction of the Elk Hills capture facility was substantially completed in 2025 as part of CRC’s strategy to diversify beyond traditional oil and gas operations while supporting decarbonization initiatives in the state. The company expects to invest $12 million to $20 million in carbon management projects in 2026 as it advances the platform.
If approved, the Elk Hills project would mark a major step toward establishing large-scale carbon capture infrastructure in California and could serve as a model for additional CCS developments across the region.