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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

ERCOT Releases Seasonal Assessment of Resource Adequacy

LCG, March 6, 2014--The Electric Reliability Council of Texas (ERCOT) yesterday released its final Seasonal Assessment of Resource Adequacy (SARA) for this spring and a preliminary outlook for this summer.

ERCOT anticipates that "tight conditions are likely" on the electric grid during the early summer months; however, the outlook improves by late summer, when over 2,100 MW of gas-fired, combined-cycle capacity is added to the grid.

ERCOT's director of System Planning stated, "While we anticipate sufficient generation for summer, conditions may become tight - potentially requiring conservation measures to protect the grid - if we see extremely high demand during the early summer, before these new units begin operating."

New gas-fired capacity is being installed at four plants: Ferguson, Panda Sherman, Panda Temple I and Deer Park Energy Center. Commercial operations are scheduled to commence by August 1, with Deer Park Energy Center scheduled to bring new capacity on-line in early July.

Panda Power Funds is building two of the new plants, and these will incorporate Siemens power island packages, including the natural gas turbines, steam turbine and waste heat recovery boilers in the 758-MW Siemens Flex-PlantTM 30 plants. Panda Power also plans to complete another combined cycle block, Temple II, and this addition is scheduled to begin operations next year.

The Lower Colorado River Authority (LCRA) is installing a combined-cycle plant at the Ferguson site to replace an older unit, which was built in 1974 and retired last year. Calpine is adding capacity at the existing Deer Park Energy Center.

ERCOT expects the peak demand for this summer to exceed 68,000 MW; ERCOT's all-time record peak of 68,305 MW occurred on August 3, 2011, during the hottest summer on record.

In early May ERCOT will release the final summer SARA, which will reflect a more thorough evaluation of the summer weather forecast and related actions that may be necessary to increase supplies, such as returning "mothballed" units to operational status for the peak season.
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