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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

AES Asks for Okay to Bring Back Two Retired SoCal Units

LCG, Jan. 12, 2001-AES Corp. asked the California Energy Commission yesterday for approval of a plan to restart two retired natural gas-fired units at its Huntington Beach, Calif., power plant. If approved, the proposal will add 450 megawatts to the state's starved electric system.

The facility, operated by AES Huntington Beach, was acquired from Southern California Edison Co. SoCal Edison had retired Units 3 and 4 of the plant in 1995. The active units, 1, 2 and 5, produce a total of about 475 megawatts.

The company said it would upgrade and improve the reliability of old boilers, replace obsolete controls, and install up-to-date emissions controls before putting Units 3 and 4 back to work. It said the two units could return to service as early as June 1.

Ed Blackburn, Huntington Beach site manager, said "We are attempting to answer the Governor's call to address the electricity crisis with the refurbishment of Units 3 & 4. But AES needs tremendous support from State and local officials to make this happen."

AES said that in order to have the units ready for operation on June 1, the permitting process needs to be complete before March 1. "This is an exceptionally aggressive timeline for permit approval. We do believe, however, the critical demand for electricity in California, coupled with the fact that we are simplyupgrading and restarting an existing generation site, makes this project the 'poster child' for fast trackaction," said Blackford.

We'll be watching. The California Energy Commission has already said the information furnished by AES was "inadequate."

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