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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 and Turner Renewables Acquire Solar Project in California

LCG, October 27, 2015-Southern Company subsidiary Southern Power and Turner Renewable Energy yesterday announced the acquisition of the Morelos del Sol Solar Facility from Solar Frontier Americas. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under a 20-year power purchase agreement (PPA) with Pacific Gas & Electric Company (PG&E). Construction on the facility commenced in July, and commercial operation is scheduled in late November. The project is Southern Power's eighth solar acquisition in California.

The Morelos del Sol Solar Facility is a 15-MW project located on a 138-acre site in Kern County, California. The solar facility will include 111,744 thin-film photovoltaic (PV) modules mounted on single-axis trackers. The engineering, procurement and construction (EPC) services are being provided by DEPCOM Power, which will also operate and maintain the facility for Southern Power. The project is aligned with Southern Power's business strategy of growing its wholesale business through the acquisition and construction of generating assets substantially covered by long-term contracts.

The Southern Company Chairman, President and CEO stated, "This acquisition with longtime partner Turner Renewable Energy strengthens Southern Company's position as a national leader in renewables. The acquisition of the Morelos del Sol Solar Facility aligns with our company's broader commitment to best meeting customers' energy needs."

Turner Renewable Energy teamed with Southern Company through a subsidiary in January 2010 to form a strategic alliance to pursue development of renewable energy projects in the United States. The partnership has primarily focused on large-scale solar PV projects in the Southwest, where solar resources are most available. This project is Southern's eighth solar project with Turner Renewable Energy and brings the partnership's overall solar capacity to over 320 MW.

Last month Southern Power announced the acquisition of a controlling interest (51 percent) in the 200-MW Tranquillity Solar Facility in California from Recurrent Energy, a subsidiary of Canadian Solar Inc. Recurrent Energy will retain the remaining interest in the project, which represents its first partnership with Southern Power. The Tranquillity Solar Facility is scheduled to commence commercial operations in the fourth quarter of 2016. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under a 15-year power purchase agreement (PPA) to Southern California Edison.

The Morelos del Sol Solar Facility is likely to be followed by many more solar ventures in California by Southern Power. California's landmark legislation SB 350, which was signed into law earlier this month, raises the renewables goal for California from a renewables portfolio standard (RPS) target of 33 percent renewable energy in 2020 to 50 percent in 2030.
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