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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

Sierra Pacific to Sell Interest in Nevada Coal-burner

LCG, Oct. 20, 2000--Sierra Pacific Resources Inc. said yesterday that it would sell its 50 percent interest in the Valmy Steam Plant, a two-unit, 521 megawatt coal-fired powerhouse located near Winnemucca, Nev., to NRG Energy Inc. of Minnesota.

NRG will pay Sierra Pacific $273.3 million for the facility and other small generation facilities, net of minor adjustments. As part of the deal, Sierra pacific will have the right to but power and ancillary services for agreed upon prices through early 2003.

The company said the sale of generation assets including Valmy, which was owned by Sierra Pacific Power Co. when it Merged with Nevada Power Co. to form Sierra Pacific Resources, is a regulatory condition of that merger.

Sierra Pacific sold its 14 percent interest in the big Mohave Generating Station in Laughlin, Nev., to AES Corp in May and expects to complete the sale of its other power plants next year.

The sale of Valmy, which is subject to approval by various regulatory bodies, is expected to close by next summer.

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