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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

Maine Renewable Plants Shut Down Temporarily

LCG, June 6, 2002--Two biomass plants in Maine that burn wood for fuel will be shut down until Sept. 30 due to the high cost of wood, said owner Boralex, Inc., a Montreal-based firm.

The plants are a 16-MW facility in Athens and a 40-MW installation in Ashland, which together can provide for the needs of 60,000 homes. The shutdowns are the latest in a series of economically based decisions leading to fewer operating biomass and renewable facilities in Maine. Five of ten biomass plants in Maine remain in operation, according to Beth Nagusky, executive director of the Independent Energy Producers of Maine.

The Maine Public Utilities Commission chairman, Tom Welch, said that the 1997 state electric industry restructuring law was not responsible for the temporary closures. There has been some debate over whether the state should require a certain portion of the state's generation to be renewable, even if it might cost more than conventional fossil fuel-derived power. Many of the renewable plants in Maine are not able to provide a price-based incentive to buyers of standard-offer electricity service, given the prices approved by the Maine PUC.

Currently, power supplies are ample due to new conventional generation in New England. The Independent Power Producers would like the state to make a 100 percent renewable generation option available to customers. Welch, the PUC chairman, while not against renewable resources, said, "how much ratepayers or taxpayers want to spend to keep these facilities open, that's a question for the Legislature."
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