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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

Enron Mexican Plant to Sell Power Next Year

LCG, June 6, 2001Enron Corp. said yesterday that its Nuevo Leon power project in Mexico would be completed on schedule late next year and begin selling power to three Mexican industrial firms.

Power from the 245 megawatt cogeneration facility will be taken by Mexican glassmaker Vitro SA, Grupo IMSA, an industrial conglomerate, and Mexico's second largest cement company, Apasco.

"Vitro will consume 110 megawatts, IMSA 90 and Apasco the remaining 45 megawatts," said Enron Mexico President Jaime Alatorre, who was attending a business conference in Monterrey.

Vitro says the new plant will cut its annual electric bill by $10 million while supplying power to at least 12 of its plants. IMSA said it expects annual energy savings on the order of 13 percent.

Cogeneration projects such as Nuevo Leon, where power produced is for private consumption, are the only private power investments possible under Mexican law. Alatorre said the country will need to change its law if private investment is to provide for the country's future energy needs.

"Congress must be made conscious of the fact that the issue of sector reform can wait no longer,"he said.

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