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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

OUC Acquires Osceola Natural Gas Power Plant

LCG, September 30, 2021--OUC (Orlando Utilities Commission) announced yesterday that it completed on Tuesday its purchase of the Osceola Generating Station, a 510-MW, natural gas-fired power plant located near Harmony in Osceola County, Florida. OUC announced plans to purchase the 20-year old, inactive facility last month.

The acquisition of the Osceola plant with three, dual-fuel gas turbines that can be rapidly powered up or down can complement growth in intermittent solar power installations in the area. OUC states that the nearly $100 million deal to purchase and upgrade the inactive plant from Genova, a Texas-based private ownership group, will not change OUC’s commitment to net zero CO2 emissions as outlined in its Electric Integrated Resource Plan (EIRP), the utility’s 30-year energy roadmap.

The acquisition will allow OUC to retire its oldest coal-fired power plant, Stanton Unit 1 that began operations in 1987 at the Stanton Energy Center, rather than converting the facility to natural gas, as stated in the EIRP. OUC has not determined Unit 1’s retirement date but states that it remains committed to significantly reducing coal fired generation no later than 2025 and eliminating it no later than 2027.

OUC’s General Manager and CEO stated, “As we move forward with our clean energy transition, ensuring operational flexibility is essential to maintaining reliability, resiliency, and affordability for our customers. We are also committed to continued investments in solar and energy storage. This purchase of peaker generator units positions us to better manage the solar production fluctuations caused by cloud cover in Florida.”

Under the EIRP, OUC plans to increase the use of renewable energy resources and encourage conservation to reach net zero CO2 emissions by 2050, with interim carbon emissions reductions of 50 percent and 75 percent by 2030 and 2040, respectively.

OUC’s transition away from coal in Florida is not unique. JEA and Florida Power & Light Company (FPL) acted in June 2020 to transition away from receiving power from a coal-fired unit at Plant Scherer in Georgia.
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