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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

Texas Poised to Invest $4.93 Billion in Transmission System Expansion for Wind Power

LCG, July 18, 2008--The Public Utility Commission (PUC) of Texas yesterday chose an electric transmission system expansion scenario that will enable the development of 18,456 MW of wind farms located in remote areas in West Texas and the Texas Panhandle. The PUC was directed by Senate Bill 20 to create a transmission plan that will increase transmission capacity to allow new wind power from remote areas to flow to load centers in Texas.

The Electric Reliability Council of Texas (ERCOT) on April 2 filed five alternative electric transmission expansion plans with the PUC, ranging from 12,053 MW to 24,419 MW of assumed new wind generation installed in the most productive wind zones in Texas. The estimated cost for the selected scenario is $4.93 billion, and the new transmission facilities are planned to be installed within four to five years.

Proponents of the expansion expect reduced emissions from power plants consuming fossil fuels and additional jobs in many areas. Opponents stated that the capital costs - which approach $5 billion - should be borne by the power generation developers that will benefit from the expansion, rather than borne just by consumers.
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