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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

Construction Commences on California Geothermal Project

LCG, May 21, 2010--Construction on the Hudson Ranch 1 power project began earlier this week at a site in the Imperial Valley of Southern California. EnergySource LLC executed a 30-year, power purchase agreement (PPA) with Salt River Project (SRP) for all of the electricity generated by the 49-MW, geothermal facility. The project is scheduled to commence commercial operations in early 2012.

The geothermal project will use superheated brine reservoirs located thousands of feet below the Salton Sea and high temperature flash-technology to generate steam for power generation. The steam will be re-injected to maintain reservoir production, and power will be generated around the clock.

The renewable energy will support SRP in achieving its goal of serving 15 percent of its retail load with renewable energy by the year 2025.

The nearly $400 million project has been under development since 2006 by Catalyst Renewables and Hannon Armstrong, the majority owners of EnergySource.

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