Energy summit looks to investors' role in Kern carbon management
Nov. 17—Kern's ambition to become a national hub for carbon management turned Friday to questions about how to attract the billions of dollars in private money necessary.
The consensus that arose during a half-day event in downtown Bakersfield was that the county has several advantages, from a pro-business environment to existing operational expertise to ideal local assets, that will help it overcome California's reputation as a place of steep regulatory hurdles.
The enormity of the challenge was not lost on the hundreds in attendance at the 16th annual Kern County Energy Summit. Speakers called for unprecedented industry collaboration combined with public outreach to reassure skeptics that safe technology exists for gathering and injecting carbon dioxide deep underground permanently.
What distinguished the sold-out summit from earlier events focused on local carbon capture and sequestration, known as CCS, was a panel of investor representatives weighing in on what must be done to reassure large investment funds that their money is safe in Kern.
Each of three panelists offered ringing endorsements of efforts already going on locally, starting with county government's experience in permitting large and complex energy projects — not just oil and gas development but the state's largest concentration solar and wind farms.
Vice President of Asset Development Vandana Gupta at Canadian-based Brookfield Renewable, which recently pledged a half-billion dollars to support a CCS project headed by local oil producer California Resources Corp., told the hundreds in attendance Wednesday that Kern has the history, natural resources and the technical and operational expertise needed to make the proposal a reality.
"All things point toward tremendous investment in Kern County," she said.
California helps by offering great financial incentives — money that's not available elsewhere around the world, Gupta said. At the same time, however, she noted investors worry about permitting uncertainties in the state, a concern she says is substantially lessened by the experience of Kern's top energy permitting authority, Director Lorelei Oviatt of the Kern County Planning and Natural Resources Department.
Fellow panelist Thania Burningham, senior manager of project finance for AES Clean Energy, agreed Kern is already taking steps necessary to attract investment, including by shortening permitting timetables. She noted Kern's long history of energy production instills confidence.
"There's proof of concept here, and that attracts investors," Burningham said, adding that another important factor will be third-party engineers to help assess local readiness for investment.
The other panelist, FieldView Capital principal Mike Umbro, pointed out that Kern has the sort of proven management teams investors typically look for. But he also urged the petroleum industry, which many say is in the best position to lead CCS development, to open up and publish its data.
