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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

New Power Plan for Ontario Relies on Nuclear and Phases Out Coal

LCG, August 30, 2007--The Ontario Power Authority (OPA) yesterday filed its proposed electricity plan with the Ontario Energy Board (OEB), the energy regulator for the Province of Ontario. Key elements of the plan include: conservation, new renewable generation, natural gas distributed generation, nuclear generation and grid improvements to transmit electricity to the market. Existing coal-fired generation would be phased out by the end of 2014.

The estimated capital cost of the Integrated Power System Plan (IPSP) is C$60 (2007 dollars), with a cost breakdown as follows: conservation, C$10.2; renewables, C$15.4; nuclear, C$26.5; natural gas, C$3.6; and transmission, C$4.0. Approximately three quarters of the transmission cost is associated with renewable resource development.

The proposed plan would roughly double the amount of renewable energy on the grid by 2025. Of perhaps greater interest is the proposal to develop nuclear power to support the growing baseload requirement. OPA plans to add approximately 10,250 MW of nuclear resources, in part through refurbishing existing reactors. Refurbishment could shorten schedules, reduce costs, and better utilize existing infrastructure.

A significant portion of the new supply resources are planned to enable the retirement of over 6,400 MW of coal-fired, generating facilities. The retirements are driven by government commitments to reduce emissions, including greenhouse gases. The environmental benefits estimated by OPA include: sulfur dioxide emissions would decrease by 95 percent, nitrogen oxide emissions would decline by over 50 percent, mercury emissions would be eliminated, and carbon dioxide emissions would decline by over 60 percent.

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