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EPA and Texas Railroad Commission Sign Memorandum of Agreement for Permitting Geologic Storage of Carbon Dioxide

LCG, April 29, 2025--Officials from the U.S. Environmental Protection Agency (EPA) and Texas Railroad Commission (RRC) signed a memorandum of agreement (MOA) today outlining the state’s plans to administer programs related to carbon storage wells, known as Class VI wells. The MOA signing is a required step in the RRC’s application to be granted authority to permit Class VI wells in the state of Texas. EPA is currently preparing a proposed approval of RRC’s primacy application.

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Calpine and ExxonMobil Sign CO2 Transportation and Storage Agreement for CCS Project in Texas

LCG, April 24, 2025--Exxon Mobil Corporation (ExxonMobil) announced yesterday an agreement with Calpine Corporation (Calpine) to transport and permanently store up to 2 million metric tons per annum (MTA) of CO2 from Calpine’s Baytown Energy Center, a natural gas-fired facility located near Houston, Texas. This is part of Calpine’s Baytown Carbon Capture and Storage (CCS) Project that is designed to add CCS for the facility’s CO2 emissions. The Calpine facility could then provide a 24/7 supply of low-carbon electricity to the Texas grid plus steam to nearby industrial facilities.

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Industry News

FERC Approves Pumped Storage Project in Oregon

LCG, May 2, 2019--The Federal Energy Regulatory Commission (FERC) granted approval and a license Tuesday to construct, operate and maintain the 400-MW Swan Lake Energy Storage Project, located near Klamath Falls, Oregon. The $800 million energy storage project is a joint project between Rye Development and National Grid, which are also in the earlier stages on an even larger, 1,200-MW project on the Washington side of the Columbia River east of Portland.

The proposed Swan Lake Energy Storage Project will provide utility-scaled energy storage capacity to complement the growth of wind farms that intermittently generate electricity within the day throughout the year. The project will pump water from the lower reservoir to the upper reservoir at times when power prices are relatively low. When power prices are high and energy is needed, water will be released from the upper reservoir through the power tunnel to the powerhouse to generate electricity. This will occur based on hourly power prices, the need to augment the production of local renewable wind power generation, or to provide ancillary power services.

The elevation difference between the two, 60-plus-acre reservoirs is over 1,600 feet, which would support an electric generating capacity of approximately 400 MW, together with a duration of up to nine hours.

The project would transmit electricity from the powerhouse via a new, 32.8-mile-long, 230-kV above ground transmission line that would connect to the grid at the Malin Substation.

The project developers are pursuing customers for the energy storage facility, which should be aligned with the needs of utilities in the Northwest that seek rapid growth in renewable resources and reducing or eliminating generation resources that emit carbon dioxide.
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