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Released June 12, 2025 | SUGAR LAND
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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas--This week the Environmental Protection Agency (EPA) announced its approval of Texas' bid to be granted primacy in approving Class VI carbon injection wells in the state under the Safe Drinking Water Act (SDWA). Before final approval the EPA will host a virtual public hearing on July 24.
According to the EPA's press release, "After conducting a comprehensive technical and legal review, EPA is proposing to determine that Texas' UIC (underground injection control) Class VI program meets all requirements for approval and that the state will implement and enforce the program consistent with the SDWA. When finalized, Texas would have primacy for all UIC well-types, allowing better coordination and improved efficiencies as the state administers these programs going forward."
Permitting will be administered by the Texas Railroad Commission, which regulates the state's oil and gas industry.
Texas would become the fifth state granted such primacy. The others are:
Because the permitting process involves lengthy environmental and other evaluations, the EPA has been notoriously backlogged in handling such applications. While the agency strives for a 24-month turnaround on such applications, its tracker shows more than 60 projects that are currently in various stages of review. Some are brand new, but several date back almost four years, starting with July of 2021.
Since the Class VI well is a cornerstone of most CCS projects, it is hoped that once Texas' primacy is confirmed, those projects can be completed more quickly.
Among the largest Texas carbon capture, utilization and storage (CCUS) projects Industrial Info is tracking is Exxon Mobil Corporation's (Spring, Texas) $5 billion Baytown Olefins Complex Blue Hydrogen and Carbon Capture Storage project. In the company's 2022 announcement, it announced storage as a key: "There, we expect to produce up to 1 billion cubic feet per day of hydrogen made from natural gas, and expect over 98% of the associated CO2 to be captured and safely stored underground. As a result, the site would be the largest low-carbon hydrogen project in the world at planned startup in 2027-2028."
Subscribers can click here to read the related project report.
Another is the $4.8 billion Stratos Direct Air Capture (DAC) and Sequestration Complex near Odessa, by Oxy Low Carbon Ventures LLC subsidiary 1PointFive USA, LLC (Santa Monica, California). 1PointFive USA said that, once complete, the facility would to be the largest direct air capture facility in the world. Designed to capture and store up to 500,000 tons of CO2 per year, it is expected to open at about half that rate, 250,000 tons per year. Subscribers can click here for the project report.
While both are claiming to be the biggest, close examination shows that they're not quite doing the same thing. The 1PointFive project is specifically DAC, while ExxonMobil's will use a significant portion of the captured carbon to make blue hydrogen.
Giving states Class VI primacy has had varying results regarding approval speed.
On the positive side, North Dakota has issued eight Class VI permits for three facilities for injection of CO2 since becoming the first state to receive primacy, in 2018. The Red Trail Energy (RTE) storage facility was permitted in 2022, eight months after being received. RTE injects CO2 captured from ethanol production facilities. The Dakota Gasification Company (DSG) storage facility was permitted in 2023, after having been submitted in March of 2022.
Louisiana, on the other hand, was granted primacy in 2023, and has yet to see much progress. While several parishes have proposed Class VI projects, the state's Department of Energy and Natural Resources (DENR) web page says, "No Class VI projects have been approved by this office at this time." The web page lists 34 companies that are in the application process for permits for 103 projects.
The earliest applications to come in or be transferred from the EPA to the DENR's purveyance were only in February of 2024, so while Louisiana is not meeting North Dakota's speed, it could still process permits faster than the EPA has been able to do.
Some Louisiana carbon storage projects face strong environmental pushback, so that could extend the time needed for the required environmental review.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
According to the EPA's press release, "After conducting a comprehensive technical and legal review, EPA is proposing to determine that Texas' UIC (underground injection control) Class VI program meets all requirements for approval and that the state will implement and enforce the program consistent with the SDWA. When finalized, Texas would have primacy for all UIC well-types, allowing better coordination and improved efficiencies as the state administers these programs going forward."
Permitting will be administered by the Texas Railroad Commission, which regulates the state's oil and gas industry.
Texas would become the fifth state granted such primacy. The others are:
- North Dakota: Granted primacy in 2018.
- Wyoming: Granted primacy in 2020.
- Louisiana: Granted primacy in 2023.
- West Virginia: Granted primacy in 2025.
Because the permitting process involves lengthy environmental and other evaluations, the EPA has been notoriously backlogged in handling such applications. While the agency strives for a 24-month turnaround on such applications, its tracker shows more than 60 projects that are currently in various stages of review. Some are brand new, but several date back almost four years, starting with July of 2021.
Since the Class VI well is a cornerstone of most CCS projects, it is hoped that once Texas' primacy is confirmed, those projects can be completed more quickly.
Among the largest Texas carbon capture, utilization and storage (CCUS) projects Industrial Info is tracking is Exxon Mobil Corporation's (Spring, Texas) $5 billion Baytown Olefins Complex Blue Hydrogen and Carbon Capture Storage project. In the company's 2022 announcement, it announced storage as a key: "There, we expect to produce up to 1 billion cubic feet per day of hydrogen made from natural gas, and expect over 98% of the associated CO2 to be captured and safely stored underground. As a result, the site would be the largest low-carbon hydrogen project in the world at planned startup in 2027-2028."
Subscribers can click here to read the related project report.
Another is the $4.8 billion Stratos Direct Air Capture (DAC) and Sequestration Complex near Odessa, by Oxy Low Carbon Ventures LLC subsidiary 1PointFive USA, LLC (Santa Monica, California). 1PointFive USA said that, once complete, the facility would to be the largest direct air capture facility in the world. Designed to capture and store up to 500,000 tons of CO2 per year, it is expected to open at about half that rate, 250,000 tons per year. Subscribers can click here for the project report.
While both are claiming to be the biggest, close examination shows that they're not quite doing the same thing. The 1PointFive project is specifically DAC, while ExxonMobil's will use a significant portion of the captured carbon to make blue hydrogen.
Giving states Class VI primacy has had varying results regarding approval speed.
On the positive side, North Dakota has issued eight Class VI permits for three facilities for injection of CO2 since becoming the first state to receive primacy, in 2018. The Red Trail Energy (RTE) storage facility was permitted in 2022, eight months after being received. RTE injects CO2 captured from ethanol production facilities. The Dakota Gasification Company (DSG) storage facility was permitted in 2023, after having been submitted in March of 2022.
Louisiana, on the other hand, was granted primacy in 2023, and has yet to see much progress. While several parishes have proposed Class VI projects, the state's Department of Energy and Natural Resources (DENR) web page says, "No Class VI projects have been approved by this office at this time." The web page lists 34 companies that are in the application process for permits for 103 projects.
The earliest applications to come in or be transferred from the EPA to the DENR's purveyance were only in February of 2024, so while Louisiana is not meeting North Dakota's speed, it could still process permits faster than the EPA has been able to do.
Some Louisiana carbon storage projects face strong environmental pushback, so that could extend the time needed for the required environmental review.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
