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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

Kumeyaay Wind Project Commences Operations

LCG, December 29, 2005--San Diego Gas & Electric (SDG&E) began receiving electricity this week from the new Kumeyaay Wind Project. The wind farm, which has a generating capacity of 50 MW, was developed through a partnership between the global investment and advisory firm Babcock & Brown and GE Energy Financial Services. Babcock & Brown will be the long-term manager of the facility.

The Kumeyaay Wind Project consists of 25 turbines and is located in San Diego County on the Campo Indian Reservation, about 70 miles east of San Diego and 18 miles north of the Mexican border. The Campo Tribe will lease the land and receive payments on the electricity sold to SDG&E. The project schedule included an eight-month construction period and one month of testing.

The State of California's Renewables Portfolio Standard (RPS) Program requires each utility, such as SDG&E, to increase its procurement of eligible renewable generating resources by 1% of load per year to achieve a 20% renewables goal. The RPS Program is managed by California's Public Utilities Commission and Energy Commission.

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