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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

Salt River Project Moves to Restart the Mohave Generating Station

LCG, September 29, 2006--The Salt River Project announced earlier this week that it intends to reopen the Mohave Generating Station near Laughlin, Nevada. Salt River is seeking new partners to rebuild the facility and plans to have a final environmental impact statement by the summer of 2007.

The coal-fired plant, with an electric generating capacity of 1,580-MW, was closed at the end of last year, when the 35-year operating permit expired. In order to reopen the plant, investments expected to cost $1.1 billion are necessary for a variety of improvements, including the installation of pollution control equipment required under a 1999 consent decree. Other issues include obtaining water supplies from the Hopi and Navajo tribes.

The current owners of the facility are Southern California Edison (SCE), the Salt River Project, Nevada Power Company, and the Los Angeles Department of Water and Power (LADWP), and their respective ownership percentages are: 56, 20, 14 and 10 percent.

Last June, SCE notified the other plant owners that it will no longer participate in activities to return the coal-fired plant to service. Following that announcement, LADWP stated that its focus is to decrease its investment in coal power and that it will withdraw from the plant. Nevada Power Company, a wholly owned subsidiary of Sierra Pacific Resources, stated that it is not economically feasible to continue with the plant and that it would terminate its participation in the project. A Salt River Project spokesperson stated at the time that, "We're not going to go it alone. If we are going to participate in the future, we would have to have new owners."

Now, after three months, the Salt River Project is working to develop a new group of owners to reopen the plant by 2011.
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