economics

The project has broad economic benefits, including providing additional employment in the Kern County area -- 1,500 new construction jobs and 100 new operating jobs, and generating additional county tax revenues -- over $5 million from construction and a million a year during operation.  The project would also reduce exposure of the California economy to rising natural gas prices, by providing an alternative fuel for power generation.

But the project does have additional costs compared to a conventional power plant due to the additional investment and operating costs of carbon capture and sequestration.  However, the use of the CO2 for enhanced oil recovery (EOR) creates an economic value for the CO2 off-take, partially offsetting the increased costs. 

The additional oil recovered would generate additional tax revenues for the state and local governments, and it would also enhance California's energy supply security, reducing the state’s dependence on foreign oil imports.