Valley oil and gas company pledges to help California reach its carbon-neutral goals | Opinion

As a leader in technological innovation, California is committed to forging a path that sets a global energy standard to achieve carbon neutrality by 2045 without burdening communities or families, or damaging the world’s fourth-largest economy.

This will require all Californians to work together to prioritize the development of dramatically more renewable energy including wind, solar and battery storage for electric vehicles, as well as support the deployment of carbon capture and storage, or CCS. During the state’s energy transition, California conventional energy (oil and gas) will continue to co-exist with renewables as a critical component in a suite of energy offerings. To succeed we must meet energy demand and achieve our sustainability goals so that no one is left behind and every Californian has access to affordable, reliable energy when and where they need it.

The recently announced acquisition of Aera Energy by IKAV and CPP Investments will marry deep experience in developing renewable and low-carbon businesses with the assets and capability that Aera offers. IKAV and CPP Investments both have substantial renewable energy investments in their portfolios, and recognize that meeting the complex challenge of climate change will require innovation across the global economy on a significant scale.

As a leading California energy company, Aera Energy has adapted for more than 25 years to meet California’s evolving stringent regulatory requirements, providing economic stability, good jobs and reliable energy while supporting the state’s climate goals with innovative solutions. In Fresno County, Aera Energy has approximately 30 employees. When looking at the direct, indirect and induced jobs created by oil and gas extraction in the county, Aera creates roughly 690 jobs that provide more than $443 million in sales and output and $64 million in compensation.

Over time, we expect renewable power will be deployed across land holdings, and select legacy oil and gas infrastructure will be re-purposed to create CCS capability, among other technologies. While CCS is new to California, it is a proven technology that captures carbon before it enters the atmosphere and safely stores it deep underground where natural formations of carbon have been for millions of years.

According to the California Air Resources Board scoping report, California’s goal is to sequester 20 million tons of CO2 per year by 2030. Today, there is no carbon going in the ground in California and only 7 million tons/year currently undergoing the permitting process. Deploying this technology efficiently and safely and proving its commercial application in California will enable the state to stay on track to achieve its sustainability goals.

Playing a key role in California’s energy future will require collaboration with stakeholders across the spectrum. To get there, we will focus on three critical tasks. First, we will rely on the ingenuity and innovation of our teams, including geologists, engineers, computer scientists and others, and partner with leading universities to develop cutting-edge technological solutions. Second, we will work to earn support from community partners, local nonprofits and others to ensure all voices are heard in the energy transformation. We are proud of our long track record of creating good paying jobs, volunteerism, charitable giving and substantial tax revenue that funds public programs like education and emergency services. As a community partner, we want to ensure diverse voices are heard while the state builds a bold vision for this beautiful state we call home.

Finally, we will work with elected officials and regulators to accelerate projects from idea to implementation in the field. For example, CARB has endorsed CCS technology as a necessary tool to reduce emissions and mitigate climate change, and at the direction of California’s Legislature, is evaluating the effectiveness and safety of the technology. Under the Biden administration’s Inflation Reduction Act, there are incentives to develop and implement CCS and renewable energy infrastructure that will further advance our efforts. Integral to the conversation and advancement of CCS is support from local and regional regulators and elected officials to implement new regulations and work collaboratively through the development process.

It’s an exciting time for Aera and for California. We are confident that together, with our new owners’ experience in energy transition and Aera’s deep bench of energy innovators along with our core values, we are positioned better than ever to help California achieve its bold energy vision and power the lives of all residents.

Erik Bartsch is president and CEO of Aera Energy LLC