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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 120-MW East Pecos Solar Facility in West Texas

LCG, March 9, 2016--Southern Company subsidiary Southern Power announced Monday the acquisition of the 120-MW East Pecos Solar Facility located in west Texas. First Solar, Inc. is building the facility and began construction last month. The project is scheduled to commence commercial operations in the fourth quarter of this year. First Solar will also operate and maintain the facility.

The power and associated renewable energy credits (RECs) generated by the East Pecos Solar Facility will be sold under a 15-year power purchase agreement (PPA) to Austin Energy. First Solar and Austin Energy announced last October that they executed a PPA for the municipally owned electricity provider to obtain electricity from the East Pecos Solar Project.

The East Pecos Solar Facility will be located on approximately 1,000 acres in Pecos County, Texas, and will use approximately 1.2 million of First Solar's thin-film, photovoltaic (PV) solar modules mounted on a single-axis tracking system, which will increase the daily energy produced by each module.

Southern Company's CEO stated, "Southern Power's acquisition of the East Pecos Solar Facility underscores the company's commitment to strategically develop renewables across America. This project aligns with its conservative business model as Southern Power has built one of the nation's largest renewable energy portfolios."

East Pecos is Southern Power's second solar project in Texas and 35th generating facility overall. Last November Southern Power announced the acquisition of a controlling interest in the 157-MW Roserock solar PV facility from Recurrent Energy, a subsidiary of Canadian Solar. The solar PV facility will use approximately 700,000 Canadian Solar CS6X-P PV solar modules that will be mounted on single axis trackers.

The Roserock solar project is also located in Pecos Country, Texas on 1,300 acres of land. The project is under construction and scheduled to begin commercial operations in the fourth quarter of this year. The electricity and associated RECs generated by the facility will be sold under a 20-year PPA to Austin Energy.

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