Project aims to produce approximately 7MM gallons of renewable gasoline and sequester over 100,000 metric tons of CO2 per annum by 2027

Verde Clean Fuels (“Verde”) (Nasdaq: VGAS), a company focused on becoming the leading supplier of gasoline and other fuels derived from renewable feedstocks or natural gas, today announced a Carbon Dioxide Management Agreement (CDMA) between Verde and Carbon TerraVault JV HoldCo, LLC (“CTV JV”), a carbon management partnership focused on carbon capture and sequestration development formed between Carbon TerraVault, a subsidiary of California Resources Corporation (“CRC”) (NYSE: CRC), and Brookfield Renewable (NYSE: BEP).

Under the terms of the agreement, Verde will construct a new renewable gasoline production facility at CRC’s existing Net Zero Industrial Park in Kern County, California. CTV JV initially plans to sequester a minimum of 100,000 metric tons (MT) per year of carbon dioxide (CO2) from Verde’s facility at the CTV I carbon storage vault. This emissions avoidance is the equivalent of taking nearly 22,000 passenger vehicles off the road. This new facility is expected to produce approximately 21,000 gallons per day of renewable gasoline (fully refined, finished fuel) from biomass and other agricultural waste feedstock to help support the further decarbonization of California’s economy and its transportation sector.

“Traditional gasoline used today is refined from crude oil and makes up over half of greenhouse gas emissions generated by the U.S. transportation sector, the largest contributor to GHG emissions. We believe our proprietary technology and scientific approach will further enable California’s consumers of gasoline to seamlessly and materially participate in the critical decarbonization of our atmosphere and help achieve California’s climate goals,” said Ernest Miller, Chief Executive Officer of Verde. “Our partnership with CTV marks a significant step towards fulfilling our domestic growth ambitions and represents a concrete pathway to decarbonizing the transportation sector. By teaming up with the leading carbon management business in the U.S., we are poised to make a substantial impact.”

“Doubling the CO2 storage opportunities under CDMAs at our Net Zero Industrial Park at Elk Hills in a matter of eight months further underscores CRC’s carbon management strategy and dedication to energy transition in California,” said Francisco Leon, CRC’s President and Chief Executive Officer. “This new agreement between CTV JV and Verde Clean Fuels provides an innovative approach to renewable fuels at the heart of energy development in the state, and further validates CRC’s decarbonization efforts by a publicly traded company looking to expand in California.”

Project & Agreement Highlights:

  • The renewable gasoline facility will employ Verde proprietary and innovative liquid fuels technology to convert synthetic gas (syngas) into renewable gasoline. The gasification system is expected to be supplied by InEnTec LLC. (www.inentec.com) The project is expected to produce approximately 7 million gallons per year of renewable gasoline for use as transportation fuel. A minimum of 100,000 MTPA of associated CO2 is expected to be permanently sequestered at CTV I
  • Project Final Investment Decision (FID) is targeted for mid-2025, with operations expected to begin in the second half of 2027
  • The CDMA also provides Verde with a lease for 50 acres at CRC’s Net Zero Industrial Park at Elk Hills field on which to construct its facility
  • CTV JV will provide in-field transportation and a permanent CO2 sequestration site at CTV I in exchange for an injection fee on a per MT basis that fits within the previously disclosed economic type-curve for projects that require a storage-only solution
  • The project’s location at the CRC’s Net Zero Industrial Park will eliminate the need for long haul CO2 transportation and reduce certain midstream capital requirements
  • CTV JV and Verde are discussing CRC’s possible financial participation in the RG facility, including potentially a significant equity stake
  • The CDMA frames the contractual terms between parties by outlining the material economics and terms of the project and includes conditions precedent to close. The CDMA provides a path for the parties to reach final definitive documents and FID

About Verde Clean Fuels, Inc

Verde Clean Fuels, Inc. (Nasdaq: VGAS) (“Verde”) is a renewable energy company focused on the development of commercial production plants to convert syngas, derived from diverse biomass feedstocks, such as yard waste, agricultural waste, and sorted municipal solid waste, as well as stranded or flared natural gas (including renewable natural gas) into gasoline through its innovative and proprietary liquid fuels technology, the STG+® process. Through its STG+® process, Verde converts syngas into fully finished fuels that require no additional refining, such as Reformulated Blend-stock for Oxygenate Blending (“RBOB”) gasoline. To learn more, please visit www.verdecleanfuels.com.

About Carbon TerraVault Joint Venture

Carbon TerraVault Joint Venture (CTV JV) is a carbon management partnership focused on carbon capture and sequestration development, and was formed between Carbon TerraVault, a subsidiary of CRC, and Brookfield Renewable. The CTV JV develops both infrastructure and storage assets required for CCS development in California. CRC owns 51% of the CTV JV with Brookfield Renewable owning the remaining 49% interest.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC has some of the lowest carbon intensity production in the US and it is focused on maximizing the value of its land, mineral and technical resources for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

Forward-Looking Statements

This document contains statements that Verde believes 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 Verde's future development of projects, financial position, business strategy, projected projects, operations, 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 Verde believes the expectations and forecasts reflected in Verde'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 Verde'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 Verde's actual results to be materially different than those expressed in Verde's forward-looking statements include:

  • Verde’s ability to finalize definitive documents and reach a final investment decision with respect to the Verde project contemplated by the CDMA (the “CDMA projected facility”);
  • Verde’s ability to obtain financing for the facility;
  • Verde’s ability to achieve expected production volumes and associated CO2 generation and the ability of the CTV JV to sequester such CO2 volumes at the facility;
  • Verde's ability to successfully execute on the construction of the facility and other aspects of infrastructure projects and enter into third party contracts on contemplated terms;
  • fluctuations in commodity prices and the potential for sustained low commodity prices;
  • equipment, service or labor price inflation or unavailability;
  • legislative or regulatory changes, including those related to (i) the management of energy, water, land, greenhouse gases (GHGs) or other emissions, (ii) the protection of health, safety and the environment, (iii) Verde's ability to claim and utilize tax credits or other incentives, or (iv) the transportation, marketing and sale of Verde's products and CO2;
  • the reduction or elimination of government economic incentives to the renewable energy market;
  • existing laws and regulations and changes to laws, regulations and policies that affect Verde’s operations;
  • demand for renewable energy not being sustained;
  • the ability to qualify for federal and state level low-carbon fuel credits;
  • any decline in the value of carbon credits and the development of the carbon credit markets;
  • availability or timing of, or conditions imposed on, permits and approvals necessary for drilling or development activities and carbon management projects;
  • Verde’s ability to grow and manage growth profitably, maintain relationships with customers and suppliers and retain key employees;
  • Verde’s ability to develop and operate new projects and obtain financing for new projects;
  • Verde’s dependence on suppliers;
  • changes in business strategy and Verde's capital plan;
  • Verde's ability to realize the benefits contemplated by the business strategies and initiatives related to energy transition, including carbon capture and storage projects and other renewable energy efforts;
  • global geopolitical, socio-demographic and economic trends and technological innovations;
  • limitations on Verde's financial flexibility;
  • insufficient cash to fund Verde's capital plan;
  • insufficient capital or lack of liquidity in the capital markets or inability to attract potential investors;
  • limitations on transportation or storage capacity;
  • Verde's ability to successfully gather and verify data regarding emissions, its environmental impacts and other initiatives;
  • climate-related conditions and weather events;
  • risks relating to Verde’s status as a development stage company with a history of net losses;
  • risks relating to the uncertainty of success or delays of Verde’s research and development efforts;
  • the ability of Verde to execute its business model, including market acceptance of gasoline derived from renewable feedstocks;
  • litigation and the ability to adequately protect intellectual property rights;
  • competition from companies with greater resources and financial strength in the industries in which Verde operates;
  • 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 Verde's periodic filings with the SEC, including its Annual Report on From 10-K, and any subsequently filed Quarterly Reports on Form 10-Q. Verde’s SEC filings are available publicly on the SEC’s website at http://www.sec.gov.

Verde cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and Verde 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 Verde has not independently verified them and do not warrant the accuracy or completeness of such third-party information.

Investor Relations: Caldwell Bailey (ICR) verdeIR@icrinc.com

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