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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

Southern Power Acquires 150-MW Solar PV Project in Southern California

LCG, October 24, 2014-Southern Company subsidiary Southern Power announced yesterday its acquisition of the 150-MW Solar Gen 2 solar facility in southern California from First Solar, Inc. Project construction began in 2013, and the project is scheduled for completion by the end of this year. San Diego Gas & Electric (SDG&E) will receive the power generated from the facility under a 25-year power purchase agreement (PPA).

The acquisition is aligned with Southern Power's business strategy of growing the wholesale business in targeted markets through acquiring generating assets and building new units, the output of which is significantly covered by long-term contracts. Southern Company Chairman, President and Chief Executive Officer stated, "Our strategic renewable development has earned Southern Company a reputation as a national leader in solar. Expanding our partnership with First Solar - a global renewable leader - will help us continue to develop a more diverse energy mix for America."

Southern Power will initially own 100 percent of the project, with First Solar agreeing to acquire a minority interest subject to certain terms and upon fulfillment of certain conditions. The Solar Gen 2 facility is being installed by and will be operated and maintained by First Solar.

First Solar purchased the Solar Gen 2 project in April 2013 from Energy Power Partners, an affiliate of The Goldman Sachs Group, Inc.

The Solar Gen 2 project includes three, 50-MW solar photovoltaic (PV) sites - Sonora, Arkansas, and Alhambra - located over an area totaling 1,451 acres in the Imperial County, California. The Solar Gen 2 project will include over one million thin-film PV solar modules mounted on tracking systems that follow the sun across the sky to maximize power generation.

Earlier this year in April, Southern Power, in partnership with Turner Renewable Energy, also acquired the Adobe Solar Facility, a 20-MW solar PV electric generating facility located in Kern County, California. Southern California Edison (SCE) has contracted for the electric output from the facility under a 20-year PPA. SunEdison built, operates and maintains the Adobe Solar Facility.

California's Renewable Portfolio Standard (RPS) was originally established by legislation in 2002, and subsequent amendments have led to the requirement for California's electric utilities to have 33 percent of their retail sales served by eligible renewable energy resources in 2020 and all subsequent years. An interim target for the utilities includes 25 percent by December 31, 2016.
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