California Resources Corporation today announced a Carbon Dioxide Management Agreement (CDMA) between Carbon TerraVault Holdings, LLC (CTV) and Grannus, LLC (Grannus), an independent clean-tech company that is building a portfolio of blue ammonia and hydrogen production facilities to supply the agriculture, mobility and marine fuel markets, to sequester 370,000 metric tons (MT) of carbon dioxide (CO2) per annum at CTV III from a new blue ammonia and hydrogen plant to be constructed in Northern California.
Called the Grannus Blue Ammonia and Hydrogen Project, the project aims to be California’s first blue ammonia and hydrogen facility producing 150,000 MT per annum of blue ammonia and 10,000 MT per annum of blue hydrogen.
The blue ammonia facility will use Grannus’ patented process which is expected to operate a virtually emissions-free facility once the CO2 is sequestered. The facility will produce blue hydrogen which is combined with nitrogen to produce ammonia for use in nitrogen-based fertilizers, while the generated CO2 will be captured and then stored permanently underground by CTV.
California produces over a third of the country’s vegetables and three-quarters of the country’s fruits and nuts, providing a strong ammonia market in the state. The blue ammonia fertilizer is expected to be supplied to CALAMCO, an investor in Grannus and a California-based cooperative made up of approximately 900 dealer and grower members, which represents the majority of agricultural ammonia demand in the state.
“We are thrilled for the expansion of our decarbonization efforts in Northern California where we see an incredible amount of carbon capture and storage (CCS) opportunities,” said Mac McFarland, CRC’s President and Chief Executive Officer. “Our partnership with Grannus begins a new chapter of carbon storage in Northern California and also positions Grannus as one of the leading clean-tech companies in the state by introducing a blue ammonia facility in San Joaquin County with permanent CO2 storage through Carbon TerraVault.”
“As a next generation clean-tech company, we are excited to partner with such a knowledgeable carbon management provider as Carbon TerraVault due to their unique vault positioning in the heart of Northern California’s industrial sectors, strong subsurface expertise, and their leadership in California’s new energy economy and carbon management,” added Matthew Cox, Grannus’ Chief Executive Officer. “California’s first blue ammonia fertilizer production facility is expected to further reduce the carbon intensity of California’s agricultural sector while delivering environmentally conscious food to every American’s doorstep. We look forward to furthering our decarbonization efforts in California.”