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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

Calpine to Provide 3,000 Megawatts to Shell Energy

LCG, July 19, 2001Calpine Corp. and Shell Energy Service Co. said yesterday they had arranged a deal under which Calpine will sell up to 3,000 megawatts of Texas power to the oil company subsidiary.

Shell Energy will market the power in the Texas retail market, which is to begin opening up to competition beginning July 31 when 5 percent of the state's retail electric customers are given the opportunity to select alternative energy providers.

The companies declined to disclose financial details of the five-year deal which is scheduled to begin next January 1.

Calpine, which already has 2,700 megawatts of installed generation in Texas, will add another 935 megawatts at two plants scheduled to begin commercial operations by the end of this year, a company spokeswoman said.

Calpine, which has been active in the Texas generation market, said the Shell deal means it has sold 85 percent of the power it can produce in the Lone Star State.

The Texas customer choice program was originally scheduled to begin on June 1, but computer problems at the state's independent system operator delayed the start. The Texas retail power market is slated to be fully open by January 1 of next year.

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