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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

Teco Plans Power Plant Fueled by Gas from Petroleum Coke

LCG, Nov. 17, 2000--Teco Power Services Corp., an affiliate of Tampa Electric Co., said yesterday it plans to build an 850 megawatt power plant in Lake Charles, La. The facility will be built next door to a Citgo Petroleum Corp. refinery and be fueled by gas produced from petroleum coke.

Under a memorandum of understanding between Teco and Citgo, the oil company will supply the power plant with petroleum coke, a byproduct of the oil refining process. Teco will convert the coke to gas using a gasification process developed by Texaco Development Corp. The power plant will also burn excess refinery fuel gas.

The power plant will use 180 megawatts of its own power to operate the gasification process and sell the remaining 670 megawatts into the regional wholesale power market, the company said. Steam from the power plant will be used by Citgo to generate electricity in its own plant for refinery use.

As part of the deal, Texaco has the right to take a 50 percent ownership in the project. Citgo is a subsidiary of government owned oil monopoly Petroleos de Venezuela.

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