NEXT Carbon Solutions (NCS), a subsidiary of NextDecade
Corporation (NASDAQ: NEXT) and California Resources Corporation
(NYSE: CRC) today jointly announced the execution of an agreement
(Agreement) to further explore the decarbonization of CRC’s Elk
Hills Power Plant. Through the deployment of NCS’ proprietary
post-combustion carbon capture processes for CRC’s CalCapture CCS+
project, the companies seek to capture and utilize the emissions
from the Elk Hills Power Plant for permanent storage in oil
producing reservoirs.
Pursuant to the Agreement, NCS will perform a front-end
engineering design (FEED) study for the post combustion capture and
compression of up to 95% of the carbon dioxide (CO2) produced at
the Elk Hills Power Plant, a 550-megawatt (MW) natural gas,
combined-cycle power plant, located in Kern County, California. The
FEED is projected to take approximately six (6) months to complete.
During the FEED, NCS and CRC expect to finalize definitive
commercial documents allowing the CalCapture CCS+ project to
proceed with a final investment decision following completion of
the FEED.
“NEXT Carbon Solutions is developing proprietary processes which
are expected to capture up to 95% of CO2 emissions at the Elk Hills
Power Plant while lowering the cost of post combustion carbon
capture,” said Matt Schatzman, Chairman and CEO of NextDecade
Corporation. “We look forward to advancing NEXT Carbon Solutions'
proprietary processes for CRC's CalCapture CCS+ project and with
their leading CCS position in California.”
Mac McFarland, President and Chief Executive Officer of
California Resources Corporation stated, “CRC is committed to
responsibly meeting California’s energy demands while reducing our
carbon intensity. The CalCapture CCS+ project has the potential to
be the first homegrown net zero barrel made in California by
Californians while capturing and storing 28 million metric tonnes
of CO2 over its project life. This locally created energy is
crucial for a state with high environmental standards that also
imports over 70 percent of its crude oil needs with a higher carbon
intensity than what can be made locally. We are excited by NCS’
proprietary carbon capture processes which lower costs and
demonstrate scalable carbon solutions to help California achieve
its energy goals.”
About NextDecade Corporation
NextDecade Corporation (NextDecade) is a clean energy company
accelerating the path to a net-zero future. Leading innovation in
greener LNG and carbon capture solutions, NextDecade is committed
to providing the world access to cleaner energy. Through its wholly
owned subsidiaries Rio Grande LNG and NEXT Carbon Solutions,
NextDecade is developing a 27 mtpa LNG export facility in South
Texas along with one of the largest carbon capture and storage
projects in North America. NextDecade is also working with
third-party customers around the world to deploy its proprietary
processes to lower the cost of carbon capture and storage and
reduce CO2 emissions at their industrial-scale facilities.
NextDecade’s common stock is listed on the Nasdaq Stock Market
under the symbol “NEXT.” NextDecade is headquartered in Houston,
Texas. For more information, please visit www.next-decade.com.
About California Resources Corporation
California Resources Corporation (CRC) is an independent oil and
natural gas company committed to energy transition in the sector.
CRC has some of the lowest carbon intensity production in the US
and we are focused on maximizing the value of our land, mineral and
technical resources for decarbonization by developing carbon
capture and storage (CCS) and other emissions reducing projects.
For more information about CRC, please visit www.crc.com.
NextDecade Forward-Looking Information
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “contemplate,” “estimate,” “expect,” “project,”
“plan,” “intend,” “believe,” “may,” “might,” “will,” “would,”
“could,” “should,” “can have,” “likely,” “continue,” “design”
“assume, “budget,” “guidance,” and “forecast” and other words and
terms of similar expressions are intended to identify
forward-looking statements, and these statements may relate to the
business of NextDecade and its subsidiaries. These statements have
been based on assumptions and analysis made by NextDecade in light
of current expectations, perceptions of historical trends, current
conditions and projections about future events and trends and
involve a number of known and unknown risks, which may cause actual
results to differ materially from expectations expressed or implied
in the forward-looking statements. These risks include NextDecade’s
progress in the development of its LNG liquefaction and export
projects and CCS projects and the timing of that progress; the
timing of achieving a final investment decision on the Rio Grande
LNG terminal (the “Terminal”); reliance on third-party contractors
to successfully complete the Terminal, the pipeline to supply gas
to the Terminal and any CCS projects; ability to develop NCS’
business though implementation of CCS projects; ability to secure
additional debt and equity financing in the future to complete the
Terminal and CCS projects on commercially acceptable terms;
accuracy of estimated costs for the Terminal and CCS projects;
ability to achieve operational characteristics of the Terminal and
CCS projects, when completed, including liquefaction capacities and
amount of CO2 captured and stored, and any differences in such
operational characteristics from expectations; development risks,
operational hazards and regulatory approvals applicable to
NextDecade's development, construction and operation activities and
those of its third-party contractors and counterparties;
technological innovation which may lessen NextDecade's anticipated
competitive advantage or demand for its offerings; global demand
for and price of LNG; availability of LNG vessels worldwide;
changes in legislation and regulations relating to the LNG and CCS
industries, including environmental laws and regulations that
impose significant compliance costs and liabilities; scope of
implementation of carbon pricing regimes aimed at reducing
greenhouse gas emissions; global development and maturation of
emissions reduction credit markets; adverse changes to existing or
proposed carbon tax incentive regimes; global pandemics, including
the 2019 novel coronavirus pandemic, the Russia-Ukraine conflict,
other sources of volatility in the energy markets and their impact
on NextDecade's business and operating results, including any
disruptions in its operations or development of the Terminal and
the health and safety of its employees, and on its customers, the
global economy and the demand for LNG; risks related to doing
business in and having counterparties in foreign countries;
NextDecade’s ability to maintain the listing of our securities on
the Nasdaq Capital Market or another securities exchange or
quotation medium; changes adversely affecting the businesses in
which NextDecade is engaged; management of growth; general economic
conditions; ability to generate cash; and the result of future
financing efforts and applications for customary tax incentives;
and other matters discussed in the “Risk Factors” section of
NextDecade’s most recent Annual Report on Form 10-K and subsequent
reports filed with the Securities and Exchange Commission.
Additionally, any development of the Terminal or CCS projects
remains contingent upon completing required commercial agreements,
securing all financing commitments and potential tax incentives,
achieving other customary conditions and making a final investment
decision to proceed. The forward-looking statements in this press
release speak as of the date of this release. Although NextDecade
believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that the
expectations will prove to be correct. NextDecade may from time to
time voluntarily update its prior forward-looking statements,
however, it disclaims any commitment to do so except as required by
securities laws.
California Resources Corporation
Forward-Looking Statements
This document contains statements that we believe to be
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements other than historical facts
are forward-looking statements, and include statements regarding
CRC's future financial position, business strategy, projected
revenues, earnings, costs, capital expenditures and plans and
objectives of management for the future. Words such as "expect,"
“could,” “may,” "anticipate," "intend," "plan," “ability,”
"believe," "seek," "see," "will," "would," “estimate,” “forecast,”
"target," “guidance,” “outlook,” “opportunity” or “strategy” or
similar expressions are generally intended to identify
forward-looking statements. Such forward-looking statements are
subject to risks and uncertainties that could cause actual results
to differ materially from those expressed in, or implied by, such
statements.
Although we believe the expectations and forecasts reflected in
CRC's forward-looking statements are reasonable, they are
inherently subject to numerous risks and uncertainties, most of
which are difficult to predict and many of which are beyond CRC's
control. No assurance can be given that such forward-looking
statements will be correct or achieved or that the assumptions are
accurate or will not change over time. Particular uncertainties
that could cause our actual results to be materially different than
those expressed in CRC's forward-looking statements include:
- fluctuations in commodity prices and the potential for
sustained low oil, natural gas and natural gas liquids prices;
- legislative or regulatory changes, including those related to
(i) drilling, completion, well stimulation, operation, maintenance
or abandonment of wells or facilities, (ii) managing energy, water,
land, greenhouse gases (GHGs) or other emissions, (iii) protection
of health, safety and the environment, (iv) tax credits or other
incentives, or (v) transportation, marketing and sale of our
products;
- availability or timing of, or conditions imposed on, permits
and approvals necessary for drilling or development projects;
- changes in business strategy and CRC's capital plan;
- lower-than-expected production, reserves or resources from
development projects or acquisitions, or higher-than-expected
decline rates;
- incorrect estimates of reserves and related future cash flows
and the inability to replace reserves;
- the recoverability of resources and unexpected geologic
conditions;
- CRC's ability to realize the benefits of business strategies
and initiatives related to energy transition, including carbon
capture and storage projects and other renewable energy
efforts;
- CRC's ability to finance and implement its carbon capture and
storage projects;
- global geopolitical, socio-demographic and economic trends and
technological innovations;
- changes in our dividend policy and our ability to declare
future dividends;
- production-sharing contracts' effects on production and
operating costs;
- limitations on CRC's financial flexibility due to existing and
future debt;
- insufficient cash flow to fund planned investments, interest
payments on our debt, stock repurchases or changes to CRC's capital
plan;
- insufficient capital or liquidity unavailability of capital
markets or inability to attract potential investors;
- limitations on transportation or storage capacity and the need
to shut-in wells;
- inability to enter into desirable transactions, including
acquisitions, asset sales and joint ventures;
- joint ventures and acquisitions and CRC's ability to achieve
expected synergies;
- CRC's ability to utilize its net operating loss carryforwards
to reduce its income tax obligations;
- CRC's ability to successfully gather and verify data regarding
emissions, its environmental impacts and other initiatives;
- the compliance of various third parties with CRC's policies and
procedures and legal requirements as well as contracts CRC enters
into in connection with its climate-related initiatives;
- the effect of CRC's stock price on costs associated with
incentive compensation;
- changes in the intensity of competition in the oil and gas
industry;
- effects of hedging transactions;
- equipment, service or labor price inflation or
unavailability;
- climate-related conditions and weather events;
- disruptions due to accidents, mechanical failures, power
outages, transportation or storage constraints, natural disasters,
labor difficulties, cyber-attacks or other catastrophic
events;
- pandemics, epidemics, outbreaks, or other public health events,
such as the COVID-19; and
- other factors discussed in Part I, Item 1A – Risk Factors in
CRC's Annual Report on Form 10-K and its other SEC filings
available at www.crc.com.
CRC cautions you not to place undue reliance on forward-looking
statements contained in this document, which speak only as of the
filing date, and CRC undertakes no obligation to update this
information. This document may also contain information from third
party sources. This data may involve a number of assumptions and
limitations, and we have not independently verified them and do not
warrant the accuracy or completeness of such third-party
information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005148/en/
IR@next-decade.com communications@next-decade.com
NextDecade (NASDAQ:NEXT)
Historical Stock Chart
From Feb 2024 to Mar 2024
NextDecade (NASDAQ:NEXT)
Historical Stock Chart
From Mar 2023 to Mar 2024