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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

Owners Plan to Keep Navajo Generating Station Open through 2019

LCG, February 16, 2017--The utility owners of Navajo Generating Station (NGS) voted yesterday to extend operations of the coal-fired power plant to the December 2019 end of its lease if an agreement can be reached with the Navajo Nation. The four utility owners of NGS include: Salt River Project (SRP), Arizona Public Service Co., NV Energy and Tucson Electric Power. The U.S. Bureau of Reclamation is the fifth owner.

Rather than closing the plant in 2017, the over two-year extension of the agreement would preserve continued employment at the plant and additional revenues for the Navajo Nation and the Hopi Tribe. It would also provide the Nation or others with the potential to operate the plant beyond 2019 should they so choose - although the current non-governmental group does not intend to be participants at that time.

The 2,250-MW electric generating station is located on the Navajo Indian Reservation near Page, Arizona, approximately 20 miles from the Grand Canyon. The station includes three, 750-MW units.

The utility owners of NGS see low natural gas prices that favor gas-fired generation over coal-fired generation like NGS. An SRP representative stated, "The utility owners do not make this decision lightly. NGS and its employees are one reason why this region, the state of Arizona and the Phoenix metropolitan area have been able to grow and thrive. However, SRP has an obligation to provide low-cost service to our more than 1 million customers and the higher cost of operating NGS would be borne by our customers."

The SRP representative stated that the owners' focus now is to secure an agreement with the Navajo Nation that would allow the plant to continue to operate through the end of its lease on December 22, 2019 and allow removal and restoration activities, which could take up to two years. SRP's announcement stated that these discussions are critical because without an agreement between the owners and the Navajo Nation, the plant would be required to cease operations this year.
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