Carbon TerraVault Eyes 1 GW California Power Project
The non-binding memorandum with Bloom Energy targets solid-oxide fuel cell generation paired with carbon capture and storage in California.
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 carbon-capture power generation in California. The company also submitted a new EPA Class VI permit application for approximately 57 million metric tons of CO2 storage.
Why it matters
The alliance is intended to accelerate commercialization of carbon capture and storage as the company expands its storage portfolio. Total submitted CO2 permit volumes have increased to approximately 409 million metric tons, signaling a larger buildout of sequestration capacity.
Carbon TerraVault reported third quarter 2026 operating revenues of $2 million and adjusted EBITDAX of $(8) million, with fourth quarter capital investments estimated at $0 to $2 million. Whether the proposed 1 gigawatt project and pipeline network will be financed and permitted on that timeline has not been determined.
The players
Carbon TerraVault
Carbon TerraVault is a carbon capture and storage company operating the Carbon TerraVault I sequestration project in California.
Bloom Energy
Bloom Energy is a fuel cell manufacturer known for solid-oxide fuel cell power systems used for distributed generation.
California Resources Corporation
California Resources Corporation is a major oil and gas producer in California whose Elk Hills Cryogenic Gas Plant supplies CO2 to Carbon TerraVault I.
The details
Carbon TerraVault I is operational and injecting CO2 for permanent sequestration in a depleted reservoir, drawing its supply from CRC's Elk Hills Cryogenic Gas Plant. The company says a potential CO2 pipeline, enabled by its Crimson acquisition, would link its storage sites with industrial emission centers in Northern and Central California.
Timeline
Third quarter 2026 financial and operating results were 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
The alliance links fuel cell power generation to permanent CO2 sequestration, a combination that positions Carbon TerraVault to supply low-carbon electricity alongside storage in a state with large industrial emitters. The move also expands the company's competitive footprint as storage volumes in its permit portfolio rise toward roughly 409 million metric tons.
For California residents, the project's progress will depend on EPA Class VI permit decisions and a final investment decision, which determine whether new power and storage capacity is built. Households and businesses see no immediate change, since the memorandum is non-binding and Carbon TerraVault I's operations are the only active infrastructure today.
The takeaway
Watch whether the memorandum converts into definitive agreements and permit approvals, since that is the step that would turn the 1 gigawatt evaluation into actual capacity. Until then, the storage and power figures remain proposals rather than built projects.
Further reading
Explore more Oil and Gas coverage for context on carbon capture projects across California.
Source note: This article includes information reported by The Manila times.
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