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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

Austin Energy Adds 500-MW of Wind Power to Its Portfolio

LCG, May 19, 2015-Austin Energy recently announced that it has added two commercial wind plants to its portfolio late last month. The addition of the Los Vientos III and Jumbo Road wind farms add approximately 500 MW of generating capacity, increasing Austin Energy's wind portfolio to 1,340 MW of installed wind energy capacity. Austin Energy's wind power will now account for approximately ten percent of the installed wind capacity in the Electric Reliability Council of Texas (ERCOT) system.

"We are now able to add more renewable wind power because of the strength of the state's utility grid," said the General Manager of Austin Energy. "With successes like this, Austin Energy will be able to surpass its 2020 goal of 35 percent renewable energy production, and propel us toward the goal of 55 percent renewable energy power supply to our customers."

The city-owned utility contracts with private, for-profit companies that can utilize federal tax subsidies to construct and operate wind power plants. Austin Energy then purchases the electricity generated by the wind farms, which it sells into the statewide electric market.

On April 22, the Jumbo Road wind farm, located in the Texas Panhandle, began commercial operation. The 300-MW facility, which includes 162 wind turbines, is owned and operated by TX Jumbo Road Wind, LLC, a wholly owned subsidiary of BHE Renewables. Austin Energy will purchase all of the power from the Jumbo Road wind farm under an 18-year, power purchase agreement (PPA).

The Los Vientos III project, owned and operated by Los Vientos Windpower III, LLC, a subsidiary of Duke Energy Renewables, began commercial operation on April 24. The 200-MW project includes 100 wind turbines and is located approximately 100 miles west of Brownsville in Starr County. Austin Energy will purchase all of the power from Los Vientos III under a 25-year PPA.

In the future, Austin Energy also will purchase the output of the 200-MW Los Vientos IV wind farm, which is under construction in Starr County. The expected completion date for the project is in 2016.

Vestas supplied 100 V110-2.0 MW turbines for Los Vientos III and will service the project under a three-year operations and maintenance agreement. Vestas will also provide turbines for Los Vientos IV and V.
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