Verde Clean Fuels announced a Carbon Capture Management Agreement (CDMA) between Verde and Carbon TerraVault JV HoldCo, LLC ("CTV JV"), a carbon management partnership focused on carbon capture and sequestration development formed between Carbon TerraVault, a subsidiary of California Resources Corporation ("CRC"), and Brookfield Renewable. Under the terms of the agreement, Verde will construct a new renewable gasoline production facility at CRC's existing Net Zero Industrial Park in Kern County, California. CTV JV initially plans to sequester a minimum of 100,000 metric tons (MT) per year of carbon dioxide (CO2) from Verde's facility at the CTV I carbon storageault.

This emissions avoidance is the equivalent of taking nearly 22,000 passenger vehicles off the road. This new facility is expected to produce approximately 21,000 gallons per day of renewable gasoline (fully refined, finished fuel) from biomass and other agricultural waste feedstock to help support the further decarbonization of California's economy and its transportation sector. Project & Agreement Highlights: The renewable gasoline facility will employ Verde proprietary and innovative liquid fuels technology to convert synthetic gas (syngas) into renewable gasoline.

The gasification system is expected to be supplied by InEnTec LLC. The project is expected to produce approximately 7 million gallons per year of renewable gasoline for use as transportation fuel. A minimum of 100,000 MTPA of associated CO2 is expected to be permanently sequestered at CTV I. Project Final Investment Decision (FID) is targeted for mid-2025, with operations expected to begin in the second half of 2027.

The CDMA also provides Verde with a lease for 50 acres at CRC's Net Zero Industrial Park at Elk Hills field on which to construct its facility. CTV JV will provide in-field transportation and a permanent CO2 sequestration site at CTV I in exchange for an injection fee on a per MT basis that fits within the previously disclosed economic type-curve for projects that require a storage-only solution. The project's location at the CRC's Net Zero Industrial Park will eliminate the need for long haul CO2 transportation and reduce certain midstream capital requirements.

CTV JV and Verde are discussing CRC's possible financial participation in the RG facility, including potentially a significant equity stake. The CDMA frames the contractual terms between parties by outlining the material economics and terms of the project and includes conditions precedent to close. The CDMA provides a path for the parties to reach final definitive documents and FID.