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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

Another Stage 2 Emergency on California Power System

LCG, Jan. 11, 2001The California Independent System Operator declared another Stage 2 electric emergency at 5:00 a.m. this morning, following a Stage 1 called at 3:19 a.m., and both will remain in effect until midnight tonight. Operating reserves needed to maintain reliability of the ISO-controlled grid are forecasted to dip to below five percent for much of the day.

In a Stage 2 yesterday, the state's three investor-owned utilities were asked to shed 1,200 megawatts of load, but Cal-ISO said it wouldn't ask for curtailment until this afternoon. Today's Stage 2 is the third this week, when peak demand has been around 32,500 megawatts.

About 10,600 megawatts of California power plants were offline yesterday because of planned maintenance or forced outages and that was already worse this today. The Nuclear Regulatory Commission's daily plant status report said this morning that both units of the Diablo Canyon nuclear power plant were operating at only 20 percent because of high seas in the Pacific Ocean which could cause kelp to foul the two reactors' cooling water intakes. That takes another 1,760 megawatts off the grid.

After learning of that reduction in resources, Cal-ISO was hit with more forced shutdowns, bringing the total amount of generation offline to more than 13,000 megawatts.

Under a Stage 2 emergency, the utilities curtail power delivery to customers that signed interruptible power contracts in exchange for lower rates. Before last spring, a company may have expected to do without electricity once or twice a year. As demand for electricity has outstripped supply, these interruptions have become an almost daily occurrence.

The Wall Street Journal in its online edition told this morning of a Southern California steel company that suffered 17 interruptions last year and finally closed a mill in December. The paper also noted that citrus growers, who depend on electricity to run irrigation pumps and large fans that keep their trees from freezing, are hard-pressed by the interruptions.

In Silicon Valley, Intel Corp., the world's largest manufacturer of computer chips, said it will quit investing in new plant until the state gets the power supply problem straightened out. The Wall Street said that a survey found that 75 percent of the members of the Silicon Valley Manufacturing Group either had no backup generators or had insufficient power lined up to meet their needs over the next two or three years.

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