TEXAS
ExxonMobil Expands Carbon Capture Industry Activity
Houston-based ExxonMobil is expanding its low-carbon solutions business on the Gulf Coast, focusing on carbon capture and storage (CCS). The company is transporting and storing carbon dioxide from various industries, including ammonia and natural gas processing, and plans to start three new CCS projects in Louisiana in 2026. To date, ExxonMobil has contracted with six customers to capture and store approximately 9 million tons of carbon dioxide annually.
Orphaned Oil Wells Reach New High, Top 11,000
The number of orphaned oil and gas wells in Texas reached a 20-year high of more than 11,000 at the end of 2025. This increase is attributed to industry consolidation, rising production costs, and falling crude prices, leading to more company bankruptcies. Orphaned wells are oil and gas wells that are not actively maintained and have no operator registered with regulatory authorities. Consequently, the state assumes the responsibility for their cleanup and plugging. The Texas Railroad Commission is addressing the issue with increased well-plugging efforts, funded by federal and state money, but concerns remain about the long-term impact on taxpayers and the environment.
New Mexico Sues Texan Oil Executives, Alleges Fraud
The State of New Mexico is suing three Midland oil executives, accusing them of transferring profitable oil and gas wells to shell companies and leaving the state to cover the costs of plugging and cleaning up abandoned wells. The lawsuit alleges a pattern of fraud and self-dealing, with the executives using bankruptcy proceedings to avoid responsibility. New Mexico faces significant financial burdens from unplugged wells, highlighting the need for stronger bonding requirements to protect taxpayers.
Controversial Natural Gas Power Plant Seeks Approval
El Paso Electric is seeking approval for a 366-megawatt natural gas power plant to fuel Meta’s new data center, despite initial claims that the project would rely on renewable energy. This has raised concerns among residents about increased air pollution, water consumption, and potential rate hikes. An El Paso economic and environmental justice group, the Sembrando Esperanza Coalition, is calling for the termination of contracts with Meta, citing a lack of transparency and deviation from public sustainability commitments.
Partnership Allows Early Data Center Startup
Eolian, an energy storage firm with operations near Fort Worth, partnered with data center developer CyrusOne to utilize Eolian’s grid connection while upgrading its battery plant. This partnership allows CyrusOne to activate its data center campus earlier than expected. This arrangement originated from discussions in 2023, and CyrusOne commenced construction last April. If the project progresses as planned, the reconstruction of the battery will conclude approximately when utility Oncor completes its grid upgrades for CyrusOne to establish its own connection. Subsequently, Eolian will be able to resume bidding into the Electric Reliability Council of Texas, with a duration sufficient to qualify for the forthcoming Dispatch Reliability Reserve Service, which mandates power plants to discharge for a minimum of four hours, which was the main reason for the upgrade.
LOUISIANA
Port NOLA Plans $1.8 Billion Global Trade Expansion
The Port of New Orleans awaits a permit from the U.S. Army Corps of Engineers to begin construction on the Louisiana International Terminal (LIT). The LIT, a $1.8 billion project, aims to expand Port NOLA’s global trade capacity by enabling it to serve larger container vessels. Port NOLA submitted a federal permit application for the LIT project after four years of studies and assessments. The Corps is now deciding whether to issue a Finding of No Significant Impact or require an Environmental Impact Statement. The public-private partnership is expected to generate 32,000 jobs and more than $1 billion in tax revenue by 2050.
First U.S. Electric Battery Chemical Plant Construction Will Complete in 2026
UBE C1 Chemicals America Inc. is constructing a $500 million, 900,000 square-foot chemical manufacturing facility in Waggaman, Jefferson Parish, to produce solvents for lithium-ion batteries and semiconductors. The project, which began construction in 2025, is expected to be completed by the end of 2026 and will create 50-to-60 permanent jobs. UCCA is utilizing modular construction methods and has engaged with the local community through donations and educational partnerships.
Lawsuit Seeks to Rescind Air Quality Permit for Plastics Plant
Environmental groups filed a lawsuit against the Louisiana Department of Environmental Quality, challenging an air quality permit for a proposed $9.4 billion plastics plant in St. James Parish. The lawsuit claims the company, the Formosa Corporation, failed to provide a new study demonstrating compliance with stricter air quality requirements. If constructed, it would become the largest plastics plant of its kind in the United States.
Mega-Study on Mississippi River Receives Funding
A major federal study on the lower Mississippi River, paused due to lack of funding, could resume after Congress appropriated $5 million. The so-called mega-study, which seeks to examine a wide range of critical issues pertinent to Louisiana and beyond, had far-reaching implications for shipping, flooding and drinking water quality, among other areas. Initiated in 2023, the study was scheduled to span five years, encompass seven states and have a budget of $25 million. However, it was halted in June when the Trump Administration declined to provide funding for its continuation.
Natural Gas Pipeline Explosion Triggers Emergency Response
On Feb. 3, a natural gas pipeline explosion ignited an active fire in Cameron Parish, necessitating an emergency response and precautionary measures at nearby facilities. The incident transpired near the coastal communities of Holly Beach and Johnson Bayou, where emergency responders confirmed that a section of the gas pipeline ignited. As a precautionary measure, authorities issued a shelter-in-place order for Johnson Bayou High School, situated approximately six miles from the blast site.
Flood Reduction Initiative Receives Funding
St. Tammany Parish received $3.75 million in federal funding for two coastal protection projects. The majority of the funding, amounting to $3.25 million, will support the St. Tammany Coastal Storm and Flood Risk Management Project, a comprehensive $5.9 billion initiative aimed at mitigating longstanding vulnerabilities to storm surge and flooding. The project encompasses a range of measures, including the construction of new levees in the Slidell area, the elevation of homes and enhancements to existing drainage systems throughout the parish.
MISSISSIPPI
Lawsuit Contends Unpermitted Turbines Cause Harm
The NAACP threatened to sue Elon Musk’s AI company, xAI, over 27 gas turbines powering a data center in Southaven. The unpermitted turbines allegedly emit harmful pollutants, violating the Clean Air Act. The NAACP demands xAI cease operations until permits are obtained.
State Leads in Environmental Budget Cuts
Mississippi cut funding for its environmental regulatory body by 71 percent from 2010 to 2024, the largest decrease among states. The state’s environmental agency budget dropped from $373 million to $107 million, and staffing decreased by 17 percent.
ALABAMA
German Manufacturer to Open Auburn Facility
German chain manufacturer KettenWulf is investing $34 million to open a new manufacturing facility in Auburn, creating 70 jobs. The company specializes in high-performance chain systems utilized in industries spanning from automotive manufacturing to heavy equipment. Establishing a U.S. operation will enable the company to expand its service to American customers while mitigating dependence on overseas supply chains.
$6 Billion Data Center Project Looking to Small Town
The small town of Childersburg is considering a $6 billion hyperscale data center project on a former munitions site. The city government of the town with a population less than 5,000 is betting the project will bring jobs and economic growth, despite concerns about environmental contamination and unknowns regarding the developer. The city council approved a zoning change allowing the data center, and the developer, tentatively identified as WHP Development, is expected to visit the site.
Legislators Seeking Changes to Environmental Regulations
Alabama lawmakers are pushing SB 71, which some argue would weaken the state’s environmental regulations by prohibiting stricter standards than the federal government. Critics argue the bill undermines public health and safety by requiring a direct causal link between pollutants and harm, a standard they say is impossible to meet. The bill also limits the Alabama Department of Environmental Management’s (ADEM) ability to set stricter regulations and could increase costs for water treatment plants.
