Calpine announced that it has executed a cost share agreement with the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) for the Sutter Decarbonization Project, a full-scale carbon capture demonstration project at its Sutter Energy Center, about 38 miles north of Sacramento, in Yuba City, California.
The Sutter Decarbonization Project will be designed to capture 95% of carbon dioxide emissions enabling the Sutter Energy Center to produce firm, dispatchable, low-carbon electricity. Calpine will now commence the first phase of the DOE cooperative agreement, with other phases to follow upon successful completion of Phase 1 and finalization of plans for subsequent phases.
“We are pleased to have reached this milestone in the development of our Sutter Decarbonization Project. This initial Phase 1 commitment by the DOE will support the engineering and design of the project, further our community engagement, and advance project planning,” said Alex Makler, Calpine’s Senior Vice President, West Region. “We are grateful to be working together with the local community and elected officials in Sutter County and Yuba City and are pleased to have their continued support.”
Calpine has been in the Sutter community for over two decades, working with the local community and elected officials to host tours and engage with community stakeholders. Makler added that “Calpine is also appreciative of the diligence and commitment of our partners at ION Clean Energy and 1PointFive Sequestration in achieving this milestone and working toward a successful project.”
Calpine is collaborating with the Sacramento Municipal Utility District (SMUD) to support its 2030 Zero Carbon Plan through the Sutter Decarbonization Project. “We are pleased to be working with SMUD and are excited about the opportunity to assist SMUD in meeting its climate goals," said Makler. “For decades, SMUD has been a leader in clean energy and carbon reduction," said SMUD Chief Executive Officer & General Manager Paul Lau. "Through innovative partnerships like the Calpine Sutter Decarbonization Project, we’re moving boldly toward our goal of zero carbon emissions while setting the standard for low rates, reliable service and an equitable clean energy future with benefits that every community can share in.”
Like all major Calpine projects in California, the Sutter Decarbonization Project will be constructed with a Project Labor Agreement. “We are deeply appreciative of the support the State Building and Construction Trades Council of California has provided in reaching this important milestone,” said Makler. “While many steps remain, this collaboration underscores our shared focus to leading the energy transition and helping our state achieve its bold emissions goals.”
In addition to the Sutter Decarbonization project, Calpine recently advanced its similarly sized Baytown Decarbonization Project in Baytown, TX, which executed the first phase of its cost sharing agreement with OCED that will help advance that project as well. “Calpine is grateful for the DOE’s commitment to working with Calpine to advance this important technology and believes that this is a recognition of the quality and strength of Calpine’s CCS program,” said Makler.
