Calpine announced that its Baytown Decarbonization project has been selected by the Office of Clean Energy Demonstrations within the Department of Energy (DOE) to negotiate to enter into a cost-sharing agreement to build a commercial-scale carbon capture and storage (CCS) project that will capture and store approximately two million metric tons of carbon dioxide each year.
In a related announcement, DOE also selected Calpine’s carbon capture project at its Sutter Energy Center in California. These decisions validate and accelerate Calpine’s work as an industry leader advancing CCS infrastructure, support private investment in CCS, protect good-paying clean energy jobs, build on Calpine’s strong community partnerships, and foster momentum of Calpine’s CCS program. The parties expect to negotiate the terms of agreement over the coming months.
Following on the success of several pilot programs focused on testing advanced CCS technologies, the DOE is administering the Carbon Capture Demonstration Projects Program to significantly improve the efficiency, effectiveness, environmental performance, and scale of CCS systems.
Located in Baytown, Texas, the Baytown Energy Center is an existing 896-megawatt natural gas combined heat and power facility that provides steam and power to the adjacent Covestro chemicals manufacturing facility as well as power to the Texas electric grid. Adding post- combustion carbon capture equipment to this facility will reduce the carbon dioxide emissions intensity of two of its three combustion turbines at a design capture rate of 95%, resulting in low CO2 steam and power for chemicals manufacturing and power for the electric grid. After being captured, the CO2 will be permanently sequestered.
“We are very pleased and honored that the DOE has recognized the quality of this project and the strength of Calpine’s CCS program,” said Thad Hill, CEO of Calpine Corporation. “We are looking forward to working with the DOE to finalize the cost-sharing agreement and with our other stakeholders to advance the development of the Baytown Decarbonization Project. Carbon capture is an important technology for decarbonizing the electricity sector and the economy. Calpine is very grateful for the commitment and support for the project by our stakeholders.”
The Baytown Energy Center is located near other significant CO2 sources in the heavy industrial Houston Ship Channel area and is proximate to multiple developing CO2 storage resources along the Texas Gulf Coast. Moving forward with this project will foster momentum and infrastructure and for broader carbon reductions in the area.
“Cogeneration facilities like Baytown provide firm, dispatchable, non-duration-limited electric and steam supply to reliably power the electric grid and industry. Facilities like Baytown will be part of our energy infrastructure for the foreseeable future, and now with CCS technology, we can decarbonize them. Calpine would like to thank the DOE as well as our state and local officials and community partners for their ongoing support,” said Caleb Stephenson, Calpine EVP Commercial Operations. “We look forward to continuing our work with the federal government and the communities in which we operate on the next phase of our company’s longstanding role in the energy transition.”
The Baytown facility’s customer and site host, Covestro, voiced its support for the project. “This is a critical step towards decarbonizing Calpine’s facility, which is located on our Covestro Baytown site,” said Demetri Zervoudis, Covestro head of operations for North America and Baytown site general manager. “Carbon capture and storage technology is an important tool for the chemical industry to reduce carbon emissions, and it is encouraging to see Calpine at the forefront of this transition.”
The Baytown Decarbonization Project is being developed in partnership and consultation with local stakeholders in East Houston. As part of the development process, Calpine will continue robust efforts to provide local community benefits such as expanding the number of full-time local jobs, enhancing workforce development programs (including opportunities for apprentices), targeting procurement with diverse and small business enterprises, and working with local K-12 schools and Minority-Serving Institutions. These benefits reflect Calpine’s long-standing history and commitment to the communities in which Calpine operates.
