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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

FPL Announces Plans to Construct Combined-Cycle Facility in Florida

LCG, July 7, 2015-Florida Power & Light Company (FPL) last week announced plans to construct the 1,600-MW Okeechobee Clean Energy Center in Florida. The natural gas-fired, combined-cycle power plant is estimated to cost $1.2 billion and is planned to commence service by mid-2019.

"Not only would this new plant help us meet the needs of Florida's growing population and economy, it would also be one of the lowest-cost, cleanest and most efficient of its kind in the world," stated the president and CEO of FPL.

In March 2015 FPL filed with the Florida Public Service Commission (FPSC) its ten-year plan that forecast a significant need for additional firm power generation beginning in 2019, with more to be added in future years. FPL also issued in the first quarter a Request for Proposals (RFP) to invite prospective bids from interested power providers for firm generation. However, FPL received only one partial bid that did not conform to the terms of the RFP and fell far short of meeting the required energy need. With such a response, FPL plans to proceed and construct its own facility.

The proposed Okeechobee Clean Energy Center would be built on company-owned property in northeastern Okeechobee County, where the 2,800-acre property also offers space to accommodate future large-scale solar power generation facilities.

Prior to construction, regulatory approval will be required, and the process is expected to extend for 14-16 months. Plans must undergo comprehensive reviews by the Florida Department of Environmental Protection, FPSC and a number of other county, state and federal government agencies. FPL intends to file for regulatory approval in the coming months.

The president and CEO of FPL stated, "We're building on our successful strategy of phasing out older, inefficient facilities and replacing them with advanced, high-efficiency clean-energy technology in a way that ensures we can meet the growing energy needs of Floridians while keeping their electric rates low. The strategy is working: our system is among the cleanest and most fuel-efficient in the U.S., and our typical customer bills are about 30 percent lower than the national average."
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