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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

Clean Coal Tech Would Boost Power Costs a Third, DOE Says

LCG, Nov. 2, 2001--Converting older coal-fired power plants that were "grandfathered" under the Clean Air Act to so-called "clean coal technology" would raise the cost of electricity by a third, the Department of Energy said yesterday.

Reducing carbon dioxide and other emissions from these plants, which are mostly in the Midwest and the South, in order to prevent global warming -- something that may not be happening anyway -- would add $9 billion a year to the cost of electricity, according to Mary J. Hutzler, acting head of the Energy information Administration, a unit of the DOE.

Testifying before the Senate Environment and public Works Committee, Hutzler said electricity from the grandfathered plants will cost 33 percent more by 2020 than it would if carbon dioxide were continued to be treated as a non-polluting byproduct of combustion and a lot of other things.

Human beings exhale carbon dioxide when they breathe. Growing plants consume carbon dioxide in the process of photosynthesis, and emit pure oxygen in its place.

Committee Chairman Sen. James Jeffords of Vermont, the Independent who made news when he defected from the Republican Party and tilted the balance of the U.S. Senate in favor of the Democrats, accused Hutzler and the Bush administration of disregarding what he claims are $59 billion in health benefits that would accompany carbon dioxide reductions.

Jeffords is author of pending legislation that would place carbon dioxide on the list of regulated pollutants. The Energy Department says his proposal would raise the total cost of electricity in the U.S. from $2.031 trillion to $2.208 trillion over the next 20 years.

Annual costs, taking into account a decline in consumption of household goods and services as money is diverted to pay for power, would be up to $30 billion.

As many as a third of existing coal-fired power plants would be shut down rather than upgraded as a side-effect of Jeffords' bill, the EIA said.

Ohio Sen. George Voinovich, a Republican, said Jeffords' bill would be "a disaster for my state and for the manufacturing base of the United States. I'm talking about the lifeblood of my state. This legislation is a threat to my economy," he said. "The bottom line is it ain't gonna happen. The president said if it's got carbon in it, he's going to kill it."

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