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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

Permit for Proposed Biomass Plant in New Mexico to be Reconsidered

LCG, August 8, 2007--The New Mexico Secretary of Environment in late May denied a permit to a proposed power plant fueled by biomass due to the planned use of natural gas as a start-up fuel. Plant start-ups would likely occur once per year for up to eight hours, according to the developer, Western Water and Power Production. Western Water and Power Production filed an appeal with the Environmental Improvement Board, and a hearing is scheduled for August 20.

As stated in the final order, "The plant will burn natural gas for up to 8 hours each time it starts up. Natural gas is a fossil fuel, and thus the plant appears to be a listed PSD source under 20.2.74.501.F, fossil fuel boilers (or combinations thereof) totaling more than 250 million BTU/hr heat input; and 20.2.74.7.AF, ?major stationary source,? as a stationary source listed in Section 501 that emits or has the potential to emit emissions equal to or greater than 100 tons per year of any regulated new source review pollutant."

The New Mexico Environment Department Air Quality Bureau supported the
issuance of the permit with conditions necessary to protect public health and welfare and the environment.

The planned electric generating capacity of the biomass facility is 35 MW, and the plant would operate as a base-load facility. The proposed electric generating facility would be located in Torrance County adjacent to Tagawa Greenhouses, which would use waste heat from the power plant to heat greenhouses.

On July 31, 2006, Western Water and Power Production and PNM, an electric utility in New Mexico, announced that they had executed a 20-year power purchase agreement (PPA) for the delivery of renewable energy from the biomass plant.

Under state law, New Mexico electric utilities must produce or purchase at least 10 percent of their customers? electricity requirements from renewable energy resources by 2011. The planned service date for the plant is early 2009.
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