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Long Beach-based oil and natural gas giant California Resources Corp. is getting into the hydrogen fuel business. Last month, California Resources announced its first project under its major new carbon sequestration initiative: an agreement to partner with Tulsa, Oklahoma-based Lone Cypress Energy Services to develop a hydrogen fuel plant that uses natural gas as its feedstock. Because water is added to the process to make the hydrogen fuel, the technology is known as “blue hydrogen.” The plant would be located above California Resource’s main oil and natural gas producing field at Elk Hills in Kern County. This blue hydrogen plant is expected to be operational by the end of 2025; when it does, it would be the first plant of its kind in the state. As part of the plant’s operation, California Resources would take the carbon dioxide byproduct that is captured and sequester it in an underground storage vault. Initially, California Resources expects to sequester 100,000 metric tons of carbon dioxide a year, an amount that it expects to double if and when the hydrogen plant’s capacity is expanded. The financial terms of the partnership and the expected cost to build the hydrogen fuel plant were not disclosed. […]
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