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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

Canada Takes Further Steps to Phase Out Coal-fired Generation

LCG, June 24, 2010--The Canadian Minister of the Environment announced yesterday that the Government of Canada will reduce greenhouse gas emissions (GHG) in the electricity sector by proceeding with regulations on coal-fired electricity generation.

Minister Prentice stated, "Today's announcement positions Canada one step closer to reaching its goal of being a clean energy superpower....A responsible, clear phase-out of the electricity sector's inefficient coal-fired generation will allow ample time for the implementation of cleaner generation technologies. This will create new jobs in the clean-energy sector, while helping Canada meets its commitment to greenhouse gas reductions....Our regulation will be very clear - when each coal-burning unit reaches the end of its economic life, it will have to meet the new standards or close down....No trading, no offsets, no credits."

There are 51 coal-fired units in Canada, with 33 identified to reach the "end of their economic life by 2025." Draft regulations are scheduled to be published next year. Final regulations are to be published later in 2011 and to come into effect on July 1, 2015.

In Canada, coal does not play as significant a role as it does in the United States in fueling power generation. Coal fuels approximately 15 percent of electricity generated in Canada, as opposed to nearly 50 percent in the United States. However, new challenges will need to be overcome in Canada if the baseload coal units, with varying levels of dispatchability, are replaced by intermittent renewables sources, like wind and solar resources.
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