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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

Spanish Endesa in Central America Power Grid Plan

LCG, Dec. 4, 2001--Spanish electric utility Endesa said this morning that it will provide one seventh of the capital for a new company building a single electric transmission grid connecting the Central American countries of Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.

A single 1,140-mile 230 kilovolt transmission line will connect the six countries, which have already signed interconnection agreements, set up a single regulator, and laid the foundations for a single market of 35 million people.

"This project has no precedent anywhere in the world," Endesa said. "With the interconnection, the Central American countries will share energy reserves and benefit from a better quality of service, a more reliable supply and, what is more important, a reduction in the cost of investment and energy prices for the consumer."

The project could be completed by 2005, Endesa said.

The idea is not new. In the 1970s, Endesa, which was then owned by the Spanish government, developed the plan for the project, but political instability in Central America has prevented any further movement.

"This project, which has roots that can be traced back to proposals floated nearly three decades ago, will become a milestone in the region's quest for integration and will establish a firm base to build on other initiatives under the Puebla-Panama Plan," said Enrique Iglesias, president of the Inter-American Development Bank, which has approved $240 million in loans for the project.

The Puebla-Panama Plan is a scheme to integrate Central America with southern Mexico with the objective of raising the region's standards of living up to those of northern Mexico.

Last year, AES Corp. of the U.S. announced plans to build a 780 megawatt natural gas-fueled power plant in Honduras. That facility would sell its output into the six-country grid at about half the current cost of electricity.

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