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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 Announces Plans for Fuel Switching from Coal to Gas at Big Sandy Plant

LCG, December 11, 2013--Kentucky Power, a subsidiary of American Electric Power (AEP), plans to convert the 278-MW Unit 1 at the Big Sandy Power Plant from a coal-fired unit to a natural gas-fired unit. The need to switch fuels is driven by compliance with the Environmental Protection Agency's regulations that go into effect in 2015.

On December 6, Kentucky Power filed an application for a Certificate of Public Convenience and Necessity (CPCN) with the Kentucky Public Service Commission to convert Unit 1 to natural gas. The application is associated with a stipulated settlement agreement in the Mitchell transfer case approved by the Commission in October.

AEP had previously planned to convert Unit 1 to natural gas. In March 2012, AEP announced that it would instead retire Unit 1.

AEP now expects the conversion to be complete by mid-2016. Following the conversion, the unit capacity will be approximately 268 MW.
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