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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

Calpine to Supply 400 Megawatts to PG&E

LCG, Oct. 18, 200--Calpine Corp. and Pacific Gas & Electric Co. have signed a two-year agreement under which the independent power producer will furnish PG&E with 400 megawatts of firm capacity beginning next July 1.

Calpine said the power would be produced by its Northern California generating facilities, which could include its new 500 megawatt Sutter Energy Center and its Geysers geothermal complex purchased from PG&E.

The contract is possibly the first between an independent power producer and a regulated utility since state regulators dropped the misguided ban against bilateral power supply contracts between California's three investor-owned utilities and merchant power companies.

"Calpine's entering into this agreement with PG&E clearly demonstrates how new merchant plants and open competition can provide Californians relief from high energy prices," said Bill Ross, manager of market development. "Two of Calpine's new energy centers in northern California will be entering production just in time to help alleviate anticipated energy shortages next summer."

The value of the PG&E deal was not disclosed.

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