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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

Dairyland Power Cooperative Buys Share of New Coal Plant

LCG, December 6, 2004--Dairyland Power Cooperative, a regional power cooperative serving customers in Wisconsin, Minnesota, Iowa and Illinois, announced last week that it has purchased a 30 percent share of the planned Weston 4 power plant from Wisconsin Public Service Corporation, a subsidiary of WPS Resources. The additional supply purchase is designed to meet growing customer demands for electricity.

Construction on the 500-MW, coal-fired power plant, located near Wausau, began in October, and operations are planned to commence in 2008. The estimated cost of the plant is approximately $750 million. Dairyland's share would be 150-MW, with a cost of about $225 million. There are also three, existing units at the station that have a combined capacity of 510 MW. The new unit will use low-sulfur coal and state-of-the-art technologies.

The Public Service Commission of Wisconsin (PSCW) approved the 500-MW expansion on September 23, 2004. The project was announced two years ago and submitted to the PSCW a year ago. The new unit is the first project approved by the PSCW under a new law designed to streamline the approval process. The purchase is subject to financing and regulatory approval.

Dairyland evaluated the alternative of constructing a 400-MW coal plant at sites in Iowa and Wisconsin. The Weston 4 alternative can deliver power earlier than the other projects, which are now expected to be placed on hold.

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