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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

Illinois Senate Blocks Taylorville IGCC Coal Project

LCG, January 13, 2011--The Illinois Senate on Wednesday did not approve proposed rate subsidies for Tenaska's planned Taylorville power project by a vote of 18 to 33. The Illinois State House previously approved Tenaska's proposal by a vote of 63 to 50 on November 30, 2010.

Tenaska planned to commence construction on the $3.5 billion project in mid 2011. Without the Senate approval, Tenaska will need to reconsider its plans.

The project design incorporates Siemens AG's integrated gasification combined cycle (IGCC) technology to gasify Illinois coal for fuel to generate electricity in the 602-MW facility.

Tenaska expects the coal gasification process will allow over 50 percent of the CO2 produced to be captured, thereby reducing the carbon emissions from the facility. The captured CO2 would then be sequestered, either by storing the CO2 underground in Illinois or transporting the CO2 via pipeline to Gulf Coast states, where it would be injected into oil fields to enhanced oil recovery.

Tenaska plans to rely upon federal support for the project, which is sited approximately 200 miles south of Chicago in Christian County. Tenaska has stated that it is waiting for final approval on a $2.579 billion federal loan guarantee and that it plans to use a $417 million federal tax credit.
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