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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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Doral Renewables Selects NovaSource as Partner to Deploy the 1.6-GWdc Mammoth Solar Project in Indiana

LCG, April 21, 2025--NovaSource Power Services ("NovaSource") recently announced that it has partnered with Doral Renewables and has been selected as the Operations and Maintenance ("O&M") and Generator Operator ("GO") for the Mammoth Solar Project, one of the largest agrivoltaics facilities in the United States.

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Industry News

Tucson Electric Power Announces Acquisition of Combined-Cycle Facility in Arizona

LCG, December 11, 2014-Tucson Electric Power Co. (TEP) announced yesterday that it has finalized the acquisition of a 550-MW, gas-fired power plant in Gila Bend, Arizona to reduce coal-fired electric generation. TEP and UNS Electric, Inc., a subsidiary of UniSource Energy Services (UES), purchased the Gila River Power Station Power Block 3 from Gila River Power LLC, a wholly owned subsidiary of Entegra Power Group LLC, for $219 million. TEP will control 413 MW of its output, while UNS Electric will control the remainder. TEP and UNS are subsidiaries of UNS Energy Corp., which was acquired in August by Canadian utility operator Fortis Inc.

TEP's President and Chief Executive Officer stated, "This acquisition contributes to an evolving resource portfolio that will continue to provide reliable, affordable and sustainable energy for our customers for many years to come". Our resource plan will result in a 25 percent reduction in carbon dioxide emissions by 2020 without compromising the affordability, safety or reliability of our service.

TEP plans to reduce its coal-fired generation capacity by approximately 32 percent by 2018. First, the lease for a unit at the Springerville Generating Station in eastern Arizona will remove approximately 200 MW of coal-fired capacity from the company's portfolio at the end of this year. Second, TEP will begin using natural gas exclusively as a fuel source for Unit 4 at the H. Wilson Sundt Generating Station in Tucson, removing another 120 MW of coal-fired capacity but the end of 2017. Third, in 2017 TEP plans to shut down Unit 2 of the San Juan Generating Station in New Mexico, of which TEP owns 170 MW. The combined capacity reductions in coal assets totals 490 MW.

The Gila River Power Station is located on a 1,100 acre site about 70 miles southwest of Phoenix and is interconnected to the Arizona power transmission network through two 500 kV ties and one 230 kV tie, which provide access to energy markets throughout the southwest. The electric generating station is comprised of four individual combined cycle power blocks, with a combined generating capacity of approximately 2,200-MW. Each power block includes two GE 7-FA combustion turbines with inlet air fogging, two Alstom heat recovery steam generators (HRSG) with supplemental duct-firing, and a GE single case, single flow axial exhaust condensing steam turbine. The facility began commercial operations in May 2003.

Earlier this week, the sale of a similar large power plant, the 1,980-MW Union Power Station, by Entegra Power was announced. Entergy Corporation subsidiaries Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C. and Entergy Texas, Inc. acquired the Union Power Station from Union Power Partners, L.P., an independent power producer (IPP) that is wholly-owned by Entegra TC LLC, for a purchase price of $948 million.
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