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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 Cancels Scrubber Plans and Opts for Natural Gas Plant

LCG, August 20, 2009--Progress Energy Carolinas announced that it has terminated plans to install scrubbers to control sulfur emissions on the Sutton Plant, a coal-fired power plant located in North Carolina, in order to meet state air quality regulations.

The new plan is to retire three coal-fired units, with a combined electric generating capacity of 397 MW, that are located at the H.F. Lee Plant and to construct a new, 950-MW facility fueled by natural gas at the adjacent Wayne County Energy Complex.

The switch from old, coal-fired units to a new, combined-cyle facility burning natural gas will enable the utility to reduce overall emissions, including carbon, sulfur and mercury, in order to achieve compliance with state emission reduction limits.

On Tuesday, the company filed for a Certificate of Public Convenience and Necessity (CPCN) from the North Carolina Utilities Commission, under new laws approved last month. The project cost is estimated to be approximately $900 million, and the new facility is scheduled to commence operations in early 2013.

Related new infrastructure includes upgrades to the electric transmission system and a natural gas pipeline.
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