Sage Geosystems, Inc. and California Resources Corporation Announce Strategic Partnership for Subsurface Energy Storage and Geothermal Power Generation in California

Rhea-AI Summary

Sage Geosystems, Inc. and California Resources (NYSE: CRC) have signed a Memorandum of Understanding (MOU) to collaborate on subsurface energy storage and geothermal power generation projects in California. This strategic partnership aims to develop clean and reliable energy solutions to meet the growing global electricity demand, including the needs of AI-capable data centers.

The collaboration leverages CRC's established presence in California and Sage's next-generation geopressured geothermal technology. Francisco Leon, CRC's President and CEO, emphasized their commitment to sustainable energy solutions, while Cindy Taff, Sage Geosystems' CEO, highlighted the potential to enhance the California power grid's resiliency and reliability.

Positive

• Strategic partnership to develop clean energy solutions in California
• Potential to enhance California power grid's resiliency and reliability
• Leveraging CRC's established presence and relationships in California
• Combining expertise to address growing global electricity demand

Negative

• None.

Insights

Energy Industry Analyst

This strategic partnership between CRC and Sage Geosystems is a significant development in California's clean energy landscape. The collaboration aims to leverage CRC's established presence and regulatory understanding with Sage's innovative geothermal technology. The focus on subsurface energy storage and geothermal power generation aligns with California's push for renewable energy sources and grid resilience. While the MOU doesn't guarantee immediate financial impact, it positions CRC to potentially diversify its portfolio and tap into the growing demand for sustainable energy solutions. The partnership could enhance CRC's long-term value proposition, especially as global electricity demand is projected to double by 2050. Investors should monitor for concrete project announcements and funding details that could materialize from this agreement. The initiative also demonstrates CRC's proactive approach to energy transition, which may positively influence its ESG profile and attract environmentally conscious investors.

Environmental Policy Expert

This partnership between CRC and Sage Geosystems represents a notable step towards California's clean energy goals. The state has been at the forefront of environmental policies and this collaboration aligns with its ambitious renewable energy targets. Geothermal power, being a baseload renewable source, could significantly contribute to grid stability—a critical factor as California increases its reliance on intermittent renewables like solar and wind. The mention of geopressured geothermal technology suggests potential for innovative approaches that could overcome traditional geothermal limitations. However, the success of this venture will depend on navigating complex regulatory landscapes and environmental impact assessments. Investors should pay attention to how this partnership progresses through California's stringent permitting processes and its potential to set precedents for future energy projects in the state.

LONG BEACH, Calif. & HOUSTON--(BUSINESS WIRE)-- Sage Geosystems, Inc. (Sage) and California Resources Corporation (NYSE: CRC) today announced the signing of a Memorandum of Understanding (MOU) to establish a collaborative framework for pursuing commercial projects and joint funding opportunities related to subsurface energy storage and geothermal power generation in California.

This strategic partnership between Sage and CRC will focus on developing clean and reliable energy solutions in the State of California. Current estimates are that the global electricity demand will double by 2050, and this does not include the demand for data centers with artificial intelligence (AI) capabilities.

By leveraging our combined expertise and resources, the companies aim to achieve significant progress in the field of subsurface energy storage and geothermal power generation.

“This MOU marks a significant step forward in our commitment to develop sustainable energy solutions,” said Francisco Leon, CRC’s President and Chief Executive Officer. “By working together with Sage, we aim to develop innovative technologies that will contribute to California’s clean energy future.”

“We are excited to partner with CRC in California as the organization has a long-established presence in the state including strong relationships with state agencies and an understanding of the regulatory environment,” said Cindy Taff, Sage Geosystems Chief Executive Officer. “Together we hope our next generation geopressured geothermal technology will add much needed resiliency and reliability to the California power grid.”

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing carbon capture and storage and other emissions-reducing projects. For more information, please visit crc.com.

About Sage Geosystems

Sage Geosystems was founded in 2020 and is developing energy storage and geothermal baseload technologies deep in the earth. The Sage Geosystems team has over 200 combined years in the oil and gas industry, with experience delivering major projects including Deepwater, Arctic, and Unconventional shales. The company is headquartered in Houston, Texas. For more information, visit www.sagegeosystems.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240923425222/en/

Joanna Park

California Resources Corporation

joanna.park@crc.com

818-661-3731



Richard Venn

California Resources Corporation

richard.venn@crc.com

310-661-6014



Claire Underwood

Sage Geosystems

claire@teamsilverline.com

540-494-7552

Source: California Resources Corporation

FAQ

What is the purpose of the MOU between Sage Geosystems and CRC (NYSE: CRC)?

The MOU establishes a collaborative framework for pursuing commercial projects and joint funding opportunities related to subsurface energy storage and geothermal power generation in California.

How does the Sage Geosystems and CRC (NYSE: CRC) partnership aim to benefit California's energy sector?

The partnership aims to develop clean and reliable energy solutions, potentially adding resiliency and reliability to the California power grid through next-generation geopressured geothermal technology.

What specific technologies are Sage Geosystems and CRC (NYSE: CRC) focusing on in their collaboration?

The companies are focusing on developing subsurface energy storage and geothermal power generation technologies in California.

Why did Sage Geosystems choose to partner with CRC (NYSE: CRC) for this initiative?

Sage Geosystems chose CRC for its long-established presence in California, strong relationships with state agencies, and understanding of the regulatory environment.