CRC - California Resources unveils carbon dioxide management deal

California Resources Corp. ( NYSE: CRC ) announced Wednesday a new carbon dioxide management agreement with clean tech company Grannus to sequester 370K metric tons/year of carbon dioxide at CTV III from a new blue ammonia and hydrogen plant to be built in northern California.

The Grannus Blue Ammonia and Hydrogen Project aims to be California's first blue ammonia and hydrogen facility, producing 150K tons/year of blue ammonia and 10K tons/year of blue hydrogen.

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 Resources ( CRC ) expects the blue ammonia fertilizer will be supplied to CALAMCO, an investor in Grannus and a California-based cooperative of ~900 dealer and grower members, which represents the majority of agricultural ammonia demand in the state.

Saying the company's worst case regulatory scenario is now "in the rearview mirror," Bank of America recently upgraded California Resources shares .

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