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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

Nigerian Power Project Contract Awarded to Shell

LCG, Jan. 28, 2002--The existing Afam Power plant near Port Harcourt, Nigeria, has been contracted for lease and operation by the Shell Petroleum Development Company of Nigeria (SPDC), which will increase capacity from 240 megawatts to 930 megawatts by 2004.

The contract, worth $540 million, is part of the Nigerian Independent Power Producer Program, intended to encourage market entry by local and foreign private investors unaffiliated with the local monopoly, National Power Authority (Nepa).

The contract calls for refurbishment of Afam units I-IV, which will be transferred together with the upcoming Afam V to Shell and operated by the company for fifteen years. The South African firm Eskom Enterprises will be responsible for operations and maintenance, and is contracted through Shell to oversee the construction and contract status.

The first stage of the upgrade, to be completed this year, will bring output at the plant up to 400 megawatts. The overall increase in generating capacity will mark a 20% increase for Nigeria, in which 36% of residents have access to electricity.

Port Harcourt, with a modern city center, is located in the rainforest, and is known as "The Garden City."
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