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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

SDG&E and AES to Commence Construction on 37.5 MW Battery Storage Projects

LCG, August 19, 2016--San Diego Gas and Electric (SDG&E) and the AES Corporation yesterday announced plans to proceed with two energy storage arrays totaling 37.5 MW at sites in San Diego County, California. The announcements follow the approval by the California Public Utilities Commission (CPUC) yesterday of the proposal by SDG&E to build the two new energy storage projects.

In May, the CPUC directed Southern California electric utilities to accelerate the installation of new energy storage options to enhance regional energy reliability and enable the addition of more intermittent renewable energy resources. The two SDG&E-owned projects are scheduled to begin construction immediately and to be operational by the end of January 2017.

SDG&E selected Advancion 4, AES' fourth generation lithium-ion, battery-based energy storage platform. The arrays are expected to provide 37.5 MW of power for four continuous hours and serve as a 75 MW flexible resource to the grid. The arrays will be installed by AES's subsidiary, AES Energy Storage, at two SDG&E substation facilities: 30 MW in Escondido and 7.5 MW in El Cajon. Once completed, the Escondido array will be the largest battery-based energy storage project in operation in the United States.

SDG&E's chief development officer stated, "These batteries are beneficial because they maintain a reliable flow of energy to customers when they need it most. We also are national leaders in supplying renewable resources, with more than 33 percent of the energy we supply to customers coming from wind and solar. These batteries will help smoothly integrate this growing supply of clean energy onto the power grid for use by our customers."

The CPUC requires SDG&E to procure a total of 165 MW of energy storage by 2020, to be operational by 2024.
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