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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

AEP's Dresden Plant Begins Commercial Operations

LCG, February 3, 2012-American Electric Power (AEP) announced Wednesday that commercial operation of the Dresden power plant has commenced. The 580-MW, combined-cycle facility is fueled by natural gas and is located near Dresden, Ohio. According to AEP, natural gas now accounts for 24 percent of AEP's total generating capacity.

AEP's president and chief executive officer stated, "This is another step in the transformation of AEP's generating fleet as we continue to diversify our fuel mix to improve our environmental footprint and provide economical electricity for our customers. Natural gas will become an increasing part of AEP's generating portfolio in the coming decades as a result of the development of shale gas reserves and new environmental regulations, but we continue to believe our company and our nation need a diverse electricity generating portfolio that also includes investment in cleaner coal technologies, nuclear and renewable power."

AEP purchased the partially constructed facility in 2007 for approximately $85 million through its AEP Generating Company subsidiary from Dresden Energy LLC, a subsidiary of Dominion. In January 2011, AEP accelerated construction, and total costs for the plant were approximately $366 million.

The Dresden plant will supply power to AEP's Appalachian Power customers in West Virginia, Virginia and Tennessee.
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