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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

CPUC Approves Contract for Biomass Repowering at Coal-fired Facility

LCG, February 5, 2010--The California Public Utilities Commission (CPUC) yesterday approved a power purchase agreement (PPA) between Pacific Gas and Electric Company (PG&E) and Mt. Poso Cogeneration Company, LLC for renewable energy from the Mt. Poso Cogeneration facility, located near Bakersfield, California.

The Mt. Poso Cogeneration plant currently combusts coal, petroleum coke, and tire-derived fuel (TDF) to generate steam and power. The new, 15-year contract allows for the facility to be modified and converted to use urban and agricultural wood wastes for fuel. The biomass facility will have an electric generating capacity of 44 MW, and the conversion project is scheduled to be completed by 2012.

The CPUC President stated, "This new agreement will reduce our state's reliance on coal and other less attractive fuels and increase our usage of much cleaner renewable energy. This is obviously a plus for California."

California has aggressive renewable energy goals that will be difficult to achieve. The CPUC's Renewables Portfolio Standard (RPS) program requires investor-owned utilities to obtain 20 percent of their retail sales from renewable energy sources by 2010. Furthermore, the Governor executed executive orders that established that (i) 20 percent of the renewable electricity should be generated from biomass resources within the state by 2010 and (ii) 33 percent of their retail sales be supplied from renewable energy sources by 2020.
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