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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

Florida PSC Approves Agreement for New Biomass Plant in Florida

LCG, August 17, 2006--The Florida Public Service Commission (PSC) approved on Tuesday a petition for Progress Energy Florida (Progress) to buy energy produced by the Florida Biomass Energy Group, LLC (Florida Biomass) at a proposed 116-MW biomass plant located near Lake Okeechobee. The plant is scheduled to commence operations no later than December 2009.

The Florida PSC recently certified Florida Biomass as a qualifying facility (QF) based on the exclusive use of renewable energy, after start-up, for the proposed electric generation.

The renewable fuel for the proposed plant is a bamboo-like grass known as E-grass. The energy crop would be harvested at the 15,000 acre site and processed into a liquid fuel using a pyrolysis process. The plant will use combustion turbine-combined cycle technology, and the thermal fuel input will include combustible exhaust gases from the pyrolysis process.

When the negotiated contract was compared to a gas-fired, combined cycle alternative, Progress estimated the capacity and energy payments over the 25-year term of the negotiated contract would produce a savings of $39 million net present value to Progress's ratepayers. The majority of such savings are based on fuel costs.

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