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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

SWEPCO Appeals Court Decision - and Proceeds with Construction at Coal Plant

LCG, July 1, 2009--Southwestern Electric Power Company (SWEPCO) requested the Arkansas Supreme Court to review last week's court decision aimed to block further development of the proposed John W. Turk Jr. electric generating station, a 600-MW, coal-fired project in Hempstead County, Arkansas.

Local landowners appealed a November 2007 decision by the Arkansas Public Service Commission (APSC) to grant a Certificate of Environmental Compatibility and Public Need (CECPN) to construct the plant. On June 24, the Arkansas Court of Appeals ruled in favor of local landowners that the APSC's review of SWEPCO's proposed coal-fired project was inadequate.

According to a SWEPCO spokesperson, "The APSC approval was overturned because the court objected to the approval procedure and not because the judges objected to the Turk Plant. We believe the Turk Plant holds the best future for long-term reliability and affordable power for our customers."

Construction on the project began late last year, after the air permit was received from the Arkansas Department of Environmental Quality in November 2008.
SWEPCO will continue construction. A SWEPCO spokesperson stated, "By law, the CECPN issued by the APSC remains in effect during the appeal process."

The estimated cost of the ultra-supercritical, advanced coal project is $1.6 billion, and project construction and spending is advancing at a rapid pace. According to a SWEPCO spokesperson, "Approximately $713 million has already been spent on plant construction, and a total of $1.3 billion has been committed. It would cost even more to stop construction and then restart it."

SWEPCO also has customers in Louisiana and Texas. In March 2008, the Louisiana Public Service Commission (LPSC) unanimously approved SWEPCO's request to build the plant, including a requirement for SWEPCO to prepare and submit a study that identifies potential, cost-effective energy efficiency and load management programs for SWEPCO's Louisiana customers. The Public Utility Commission of Texas approved the proposal in July 2008.
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