California Resources and Bloom Energy Assess 1-Gigawatt Project With Carbon Capture
Key Facts
California Resources and Bloom Energy signed a memorandum of understanding to assess developing at least 1 gigawatt of solid oxide fuel cell power generation paired with carbon capture and storage in California, Reuters reported. The agreement establishes a framework for studying potential projects that combine energy production with emissions management, but it does not mean the targeted capacity has become a funded or approved project. The projects under consideration could enable the capture and storage of up to 3 million metric tons of carbon dioxide emissions annually. That figure refers to the potential of the projects being assessed, while the 1-gigawatt capacity remains a target for potential development. The scope of execution therefore depends on the outcome of subsequent negotiations, decisions and permits.
The initial assessment includes front-of-meter and behind-the-meter projects in central and northern California, according to the coverage. The division points to two potential ways to deliver electricity, one through the grid and the other directly to a customer site. In the first, projects could be linked to Carbon TerraVault's carbon storage portfolio in California, with electricity sold to utilities. Behind-the-meter projects could be located within California Resources' operations in the Central Valley to provide on-site power to industrial customers. This distribution reflects an initial concept for selecting sites for use and storage, rather than a final project list.
The companies said they intend to identify potential energy buyers among utilities, community choice aggregators, municipalities, data centers and industrial users. The list includes entities that could buy power through the grid and others that may benefit from direct supply at their sites. Available details did not specify the size of demand from any category or name specific buyers. Identifying customers depends on assessing the front-of-meter and behind-the-meter projects and the characteristics of the sites under consideration. These entities remain potential parties at the assessment stage, not customers under contract through the memorandum of understanding.
The memorandum brings together Bloom Energy's fuel cell and carbon capture technologies with Carbon TerraVault's capabilities in transporting and storing carbon dioxide, Reuters reported. Carbon TerraVault is California Resources' carbon management unit. This division of responsibilities means the partnership concept links power generation with a pathway for transporting and handling emissions after capture. Front-of-meter projects rely on the storage portfolio to provide a potential route for carbon, while behind-the-meter projects focus on supplying industrial customers with on-site power. The arrangement combines the companies' roles, while practical implementation remains subject to development and approvals.
The memorandum is non-binding, and carrying out the projects requires final documents, final investment decisions by both parties, Class VI permits from the U.S. Environmental Protection Agency and other regulatory approvals. The memorandum of understanding alone does not establish that any of these conditions have been met. A final investment decision is also required from both parties, making progress on the project contingent on their approval. Requirements include permits related to carbon capture and storage projects, as well as other regulatory approvals. Until these conditions are met, the announcement remains an agreement to assess, not an announcement that construction has begun or new capacity is operating.
The announcement comes as Bloom Energy had raised its fiscal 2026 revenue guidance to a range of $4.4 billion to $4.6 billion, saying the midpoint represents year-over-year growth of 122%. The company's results also showed revenue of $1,235,837 thousand in the third quarter of 2026, compared with revenue of $1,065,365 thousand in the second quarter. Chief Executive KR Sridhar said demand for reliable power is driving the spread of on-site distributed generation beyond hyperscalers, adding: "What started with hyperscalers is rapidly spreading across market segments, because every company needs reliable power to grow." By the close of trading on November 2, Bloom Energy's stock had more than doubled year to date, Reuters reported. Available information did not include a reliable high or low share price for that session.