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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

TXU Streamlines Generation Portfolio in Texas

LCG, February 4, 2005--TXU Corp. announced it plans to sell or offer capacity through tolling arrangements a total of 6,214 MW of electric generating capacity in Texas. The capacity is available from older gas-fired, power plants. A subsidiary, TXU Power, issued a Request for Proposals (RFP) earlier this week and plans to complete the RFP process in the second quarter of 2005.

The units available for tolling arrangements are located at DeCordova, Permian Basin, and Morgan Creek Stations, with a combined capacity of 2,744 MW. Units available for either tolling or purchase are located at Collin, Trinidad, North Lake, Lake Creek, Eagle Mountain, Sweetwater and Valley Stations, with a combined capacity of 3,470 MW. TXU Power expects to satisfy its needs through the use of its remaining natural gas-fired plants, together with its nuclear and coal-fired generating fleet.

In January, TXU announced that it will stop operating nine, 65-MW, gas-fired combustion turbines installed at Permian Basin and DeCordova Stations. Last November, TXU announced it planned to mothball the units located at Valley, North Lake and Morgan Creek stations and estimated total annual savings to be approximately $20 million.

With the considerable quantity of new, efficient generating capacity installed in Texas over the past few years, a surplus of capacity exists now and older, less-efficient plants have limited value. In January, Texas Genco LLC also announced that it planned to retire nearly 3,800 MW of gas-fired generating units at six power plants in the vicinity of Houston. Of the generation to be retired, 2,567 MW of capacity had been previously mothballed. The units identified for closures are: P.H. Robinson, Cedar Bayou 3, T.H. Wharton 2, H.O. Clarke, Deepwater 7, and Webster. The age of these units ranges from roughly 30-50 years.

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