California Resources Signs MOU to Drive Decarbonized Power Solutions

December 18, 2025 — 08:38 am EST Written by Zacks Equity Research for Zacks-> California Resources Corporation CRC, a CA-based oil and gas exploration and production company, has taken a significant step forward in its carbon management business through a new partnership with Middle River Power, LLC (“MRP”), an independent power producer and asset management firm. This strategic collaboration is designed to deliver carbon capture, transportation and sequestration services to MRP's power facilities in California, marking an important milestone in the state's pursuit of decarbonization.This partnership between CRC and Middle River Power is anchored in a Memorandum of Understanding (“MOU”), a formal yet non-binding agreement outlining their shared goals for sustainable energy solutions. Through this MOU, CRC's Carbon TerraVault business will provide carbon capture and sequestration (“CCS”) services to MRP’s power plants, focusing initially on two facilities in California.The two power plants, located in Victorville and Tracy, CA, are key contributors to the state's energy production, with the High Desert Power Plant generating 850 megawatts (“MW”) and emitting up to 2.1 million metric tons of carbon dioxide (CO2) annually. Meanwhile, the San Joaquin Energy Center in Tracy produces 330 MW, with a carbon dioxide output of 0.65 million metric tons per year.At the core of this partnership is the evaluation and development of innovative CCS technologies. By leveraging CRC’s existing infrastructure and Carbon TerraVault’s vast resources, the companies aim to significantly reduce the carbon footprint of the power sector in California.The MOU outlines CRC's exclusive role in providing carbon dioxide transportation and sequestration services for MRP’s power facilities. This partnership highlights CRC's commitment to helping companies meet their carbon neutrality goals and aligns with California’s ambitious climate targets.The state of California has long been at the forefront of environmental responsibility and energy transition. As part of its efforts to combat climate change, California has established strict regulations around carbon emissions, pushing power producers to adopt more sustainable practices. By partnering with MRP, CRC is not only contributing to these efforts but also poised to help facilitate the state’s transition to cleaner energy.Mark Kubow, chief executive officer of Middle River Power, expressed its commitment to fostering cleaner, more reliable energy solutions. Kubow emphasized that the MOU represents a major step forward in decarbonizing their existing power infrastructure while supporting California’s climate and reliability goals. The collaboration signifies a shared vision for a greener future while maintaining reliable energy production, essential for both the state's economy and its residents.As the world shifts toward sustainable energy, the demand for decarbonization technologies has grown exponentially. The power industry, a significant emitter of greenhouse gases, faces pressure to adopt solutions that minimize its environmental impact. CRC’s partnership with MRP exemplifies this shift, as it highlights practical and economically feasible methods for reducing carbon dioxide emissions in brownfield power facilities.Through this MOU, CRC and MRP will jointly explore various decarbonization pathways, enhancing the viability of Power-to-CCS solutions and offering a scalable model for other facilities seeking to reduce their carbon footprint.CRC is well-positioned to take advantage of recent legislative developments in California, which have supported the carbon transportation and storage sectors. The state’s progressive regulatory environment, coupled with CRC’s robust infrastructure, makes this partnership particularly timely. This support provides a favorable environment for both CRC and MRP to accelerate their decarbonization efforts, helping California achieve its ambitious greenhouse gas reduction targets.Francisco Leon, CRC’s president and CEO, highlighted the importance of these legislative changes. Leon expressed confidence that CRC's Power-to-CCS solution is scalable and will play a key role in enabling power producers to achieve sustainability and reliability goals. With the backing of California’s climate legislation, CRC is uniquely positioned to support its partners in the energy sector.This MOU marks just the beginning of a promising collaboration between CRC and MRP. Both companies have expressed a desire to explore additional opportunities for decarbonized power solutions in California, with the ultimate goal of contributing to the state’s broader decarbonization objectives.As the partnership progresses, CRC and MRP will focus on expanding their joint efforts to optimize power generation while simultaneously reducing the environmental impact of their operations. By continually innovating and refining their CCS technologies, both companies aim to remain leaders in the clean energy transition.The partnership between CRC and MRP marks a significant step toward achieving a sustainable energy future for California. With a strong focus on carbon capture and sequestration, this collaboration is poised to help the state meet its climate goals while supporting the continued evolution of the power sector. By leveraging advanced carbon management technologies and aligning with California’s stringent environmental standards, CRC and MRP are setting the stage for innovative solutions that will define the future of energy production in the state.Currently, CRC has a Zacks Rank #4 (Sell).Investors interested in the energy sector might look at some better-ranked stocks like USA Compression Partners USAC, Oceaneering International OII, which sport a Zacks Rank #1 (Strong Buy) each, and PattersonUTI Energy PTEN, which carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.USA Compression Partners is valued at $2.88 billion. The company is a leading provider of natural gas compression services in the United States. USA Compression Partners specializes in the design, operation and maintenance of compression equipment for the energy sector, focusing on helping customers optimize their natural gas infrastructure.Oceaneering International is valued at $2.41 billion. The company is a global provider of engineered services and products to the offshore energy, aerospace and defense industries. Oceaneering International specializes in underwater robotics, remotely operated vehicles and subsea engineering solutions for offshore oil and gas exploration and production.Patterson-UTI Energy is valued at $2.23 billion. The company is a leading provider of drilling and pressure pumping services to the oil and natural gas exploration and production industry in North America. Patterson-UTI Energy offers a wide range of services, including land-based drilling rigs, pressure pumping and other energy-related solutions, primarily focused on the U.S. shale oil and gas markets. 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(OII) : Free Stock Analysis ReportUSA Compression Partners, LP (USAC) : Free Stock Analysis ReportCalifornia Resources Corporation (CRC) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.