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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

Progress Energy Florida Pursues Renewable Energy

LCG, July 24, 2007--Progress Energy Florida, a subsidiary of Progress Energy, announced late last week that it is issuing a request for renewables (RFR) to expand the company's renewable portfolio, to offset the need for new power plants, and to reduce Florida's dependence on fossil fuels. The pursuit of renewables is consistent with Florida Governor Charlie Crist's recent executive order suggesting a 20 percent renewable portfolio standard for utilities and the Governor's interest in responding to climate change concerns related to the use of fossil fuels.

Progress Energy Florida is targeting cost-competitive, renewable energy projects that are located in Florida and use renewable fuels, including: hydrogen, biomass, solar, geothermal, wind, ocean energy, hydroelectric power, or waste heat from a manufacturing process. The projects must be fully operational by January 1, 2013. The Florida Public Service Commission has pre-approved an as-available contract and a standard offer contract for renewable energy.

Progress Energy Carolinas, another utility subsidiary of Progress Energy, announced in late May its goal to meet customer growth in an environmentally sound manner, including with respect to global climate change issues. Progress Energy Carolinas plans to displace 2,000 MW of electric generation through demand-side management and energy-efficiency programs.

Both Progress Energy Florida and Progress Energy Carolinas are also pursuing the development of new nuclear reactors, which would tend to reduce the carbon intensity (carbon emitted per megawatt hour generated) of the Progress Energy electric generation portfolio. Progress Energy Florida selected a site in Levy County, Florida near its existing Crystal River Energy Complex for the possible construction of a new nuclear power plant. Progress Energy Carolinas plans to build new reactors at Progress Energy's Harris Nuclear Plant in the Carolinas. Progress Energy has not yet made decisions on whether or not to proceed with the installation of any new reactors.









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