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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

Groundbreaking Imminent for Arizona Coal Generating Plant

LCG, Oct. 21, 2003--Work is scheduled to begin at the Springerville Generating Station on two new coal-fired units with combined capacity of 400 megawatts, according to Tri-State Generation and Transmission Association and Tuscon Electric Power Co. (TEP).

Units 3 and 4 are scheduled to come on-line in 2006, when Tri-State will lease the entire capacity, devoting 200 megawatts to load that will include some anticipated increases in demand in southwestern Colorado and New Mexico. TEP will purchase 100 megawatts through a power purchase agreement. The remaining 100 megawatts will be under contract to Salt River Project, based on a 30-year contract.

Operation of the new units will be undertaken by TEP, which owns and is responsible for units 1 and 2, which are also coal-fired. Deliveries of Powder River Basin coal will be made by way of the Burlington Northern Santa Fe railroad system.

Tri-State is a power cooperative supplying wholesale electricity to 44 consumer-owned cooperatives and public power districts in Colorado, New Mexico, Wyoming and Nebraska. Tuscon Electric Power, the main subsidiary of UniSource Energy Corp. and Arizona's second largest investor-owned utility, serves approximately 360,000 customers in southern Arizona.
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