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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 Power Plans Coal Gasification and Power Plant Project

LCG, October 8, 2002-Clean Coal Power Resources, Inc. said that it will begin a $4.5 billion project involving the construction of a power plant, coal mine, and a coal gasification plant in Illinois.

The company has chosen its Fayette County site in rural Illinois because of local coal reserves and the region's coal industry history. CCPR has already made a payment of $250,000 to the county for a 99-year coal mining lease and estimates it will hire roughly 1,600 workers on a permanent basis.

The mine's construction will see the hire of an additional 250 workers, while 4,000 workers will be needed to complete the gasification and power facilities. According to CCPR, the county has a significant number of laid off coal miners because of area coal facility closings.

Gasification of coal, which reportedly yields a much cleaner-burning fuel than the original coal, is touted as an up-and-coming important energy source for the country. The U.S. has considerable coal reserves which cannot feasibly be used to expand coal-fired power significantly because of environmental restrictions.

The process of gasification of coal yields chemicals and synthetic gas, or syngas, which can be burned as a fuel. The company's planned on-site combined-cycle plant will burn syngas produced by the coal mine and gasification plant. The gasification plant, comprised of six Fischer-Tropsch reactors, is estimated to produce daily 32,333 barrels of naphtha and 64,666 barrels of Fischer-Tropsch diesel.

The permitting process for the facility is expected to begin by the end of 2002, and construction will commence next year.

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