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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

KU & LG&E Moving Forward on New Combined Cycle Plant at Cane Run

LCG, August 21, 2012--Louisville Gas & Electric (LG&E) and Kentucky Utilities (KU) recently awarded PCL Industrial Construction (PCL) and Black & Veatch a $583 million contract to design and build a new natural gas-fueled power plant at the Cane Run Station, located in southwestern Louisville.

LG&E and KU announced plans for the combined cycle plant last September. The project is intended to offset in part the retirement of coal units at Cane Run, Green River and Tyrone Stations caused by new federal regulations imposed by the Environmental Protection Agency (EPA). The coal-fired units are scheduled to be retired by 2016.

The companies requested in a Certificate of Public Convenience and Necessity (CPCN) filed last September with the Kentucky Public Service Commission approval to build a 640-MW, natural gas-fired combined cycle generating unit at Cane Run Station.

The new Cane Run facility will incorporate Siemens advanced technology gas turbines and will provide approximately 660 MW of electric generating capacity.

Commercial operation of the Cane Run Station began in 1954. Three of its six coal-fired units are now retired; the remaining Units 4, 5 and 6 provide a combined net generating capacity of 563 MW.


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