Fuel Cells Paired With CO2 Storage Eyed in California
The non-binding plan to evaluate 1 gigawatt or more of fuel cell power remains research-stage, pending permits and investment decisions.
Updated on Nov. 2, 2026 in Energy
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California Resources Corporation and Bloom Energy signed a non-binding memorandum of understanding to evaluate solid-oxide fuel cell power paired with carbon capture and storage in California. The research-stage collaboration covers 1 gigawatt or more of generation and remains subject to definitive documents, a final investment decision, and EPA Class VI permits.
Why it matters
The deal pairs on-site fuel cell generation with carbon capture, a combination aimed at supplying firm power while sequestering CO2 underground. California Resources frames the effort around a state need for more clean, firm, reliable, and affordable power generated in state.
The memorandum targets solid-oxide fuel cell capacity of 1 gigawatt or more, paired with carbon capture and storage, with up to 3 million metric tons per annum of CO2 potentially available for permanent storage. These figures describe the scale under evaluation rather than demonstrated performance, and the projects remain unbuilt.
The players
California Resources Corporation
An independent oil and gas producer in California whose Carbon TerraVault business operates CO2 transportation and sequestration infrastructure.
Bloom Energy
A fuel cell manufacturer known for its solid-oxide fuel cell systems used for on-site power generation.
Carbon TerraVault
The carbon management business of California Resources Corporation, currently operating Carbon TerraVault I for CO2 storage in a depleted reservoir.
The details
Solid-oxide fuel cells generate electricity by electrochemically combining a fuel with oxygen through a ceramic electrolyte, producing power without combustion. The companies will combine Bloom's fuel cell technology and third-party carbon capture technologies with Carbon TerraVault's CO2 transportation and storage capabilities. Carbon TerraVault is the carbon management business of California Resources Corporation, and its first project, Carbon TerraVault I, is already operational, injecting CO2 into a depleted reservoir for permanent sequestration. The companies also plan to identify potential third-party power offtake customers, including utilities, community choice aggregators, municipalities, and data centers.
Timeline
November 2, 2026: Memorandum of understanding signed and announced.
The Tech Race
The collaboration builds on Carbon TerraVault I, which is already injecting CO2 for permanent sequestration, and seeks to add a generation source that supplies both power and CO2 for it. The effort is positioned as a research-stage expansion of an operating storage business rather than a demonstrated combined system.
No availability, pricing, or delivery timeline has been announced, and the projects are not yet approved for construction. Any eventual power or storage service would depend on final investment decisions, offtake agreements, and regulatory permits.
The takeaway
Watch for the definitive agreements, final investment decision, and EPA Class VI permit applications that would move these projects beyond evaluation. Confirmation that offtake customers such as utilities or data centers have signed on would indicate whether the fuel cell and storage pairing is commercially viable.
Further reading
For more on how energy projects are evolving across the state, explore Energy coverage.
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