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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

SCE Selects Six Companies for 125-MW of Grid Edge Technologies

LCG, September 19, 2016--Southern California Edison (SCE) recently announced that it has selected six companies to construct 125 MW of distributed energy storage and demand response for its Preferred Resources Pilot (PRP), a long-term testing ground to learn how distributed energy and the grid can work together.

The companies selected for the second round of PRP contracts include: Advanced Microgrid Solutions, with a 40-MW contract for demand response (DR) with energy conservation and batteries; Convergent, with 35 MW of batteries; Hecate with 15 MW of batteries; NextEra with 10 MW of batteries and 10 MW of demand response, NRG with 10 MW of solar-storage "hybrid," and residential battery startup Swell with 5 MW of batteries.

SCE is offering 10- to 20-year contract terms, with delivery set to begin between 2018 and 2020. These six companies will now pursue developing sites and customers within specific areas of Orange County served by SCE's Johanna and Santiago substations, where reliability is a concern given (i) the closure of the San Onofre Nuclear Generating Station (SONGS), (ii) the planned closures of natural-gas-fired power plants serving the area, and (iii) the changing patterns of grid power generation over the course of the day, largely driven by the growth rooftop solar PV.

The PRP was started at the same time as a testing ground for these technologies on a more local scale, as well as to develop the technology expertise to expand SCE's smart grid capabilities to include more distributed energy resources (DERs) at a broader scale. The initial procurement was primarily for rooftop solar and energy efficiency, unlike this new round, which includes batteries for all the projects.
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