California Resources Corporation (CRC), California’s largest producer of oil and natural gas, announced the formation of a joint venture with Brookfield Renewable to create a carbon management partnership in California focused on carbon capture and sequestration (CCS). CCS is a process of taking carbon dioxide out of the atmosphere or arising from an industrial process and sequestering or storing it in suitable storage facilities or infrastructure indefinitely.
Brookfield has committed an initial $500 million to invest in CCS projects. The JV is targeting 200 million metric tons of carbon dioxide storage development. This investment from Brookfield will be allocated through the Brookfield Global Transition Fund, the world’s largest fund dedicated to facilitating the global transition to a net zero carbon economy, and is an important step in CRC’s plans to achieve net-zero Scope 1, 2 and 3 emissions by 2045.
The S&C team advising CRC includes Alison Ressler (Los Angeles), Inosi Nyatta, Renata Mascarenhas (Los Angeles) and Danielle McKenna (Palo Alto). Isaac Wheeler and Eli Dubin advised on tax matters. Nader Mousavi, Mark Schenkel (both Palo Alto) and Philippe Schiff advised on intellectual property matters.