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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

Illinois IGCC Project Receives Air Permit

LCG, June 6, 2007--The Illinois Environmental Protection Agency issued the air permit to Christian County Generation LLC for the Taylorville Energy Center, a proposed coal-fired, electric generating station using an integrated gasification combined cycle (IGCC) design. Construction may begin this year, and operations could commence in 2012.

As proposed, the Taylorville Energy Center would be a 630-MW electric generating station located in central Illinois. The plant would use Illinois Basin coal that is converted to syngas using a gasification process provided by General Electric.

The estimated project cost is $2 billion, and the State of Illinois pledged $500 million in low cost bonds to help finance the plant.

In July 2006, Tenaska announced that it agreed to acquire a 50% development-stage interest in the proposed Taylorville Energy Center from The ERORA Group LLC. The agreement called for Tenaska to jointly develop the remainder of the project with The ERORA Group.

There are a number of hurdles that remain in order for the project to proceed, including approval of the Illinois Clean Coal Program Law that enables developers to enter into long-term, regulated cost-based contracts with large Illinois electric utilities.
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