NET Power plans to develop and build the world’s first utility-scale natural gas-fired power plant with near-zero atmospheric emissions. The company says the project will fully integrate power production with transportation and underground sequestration of carbon dioxide.
The new plant, expected to be online by 2026, will be built near Occidental’s Permian Basin operations.
NET Power’s technology produces power while inherently capturing nearly all emissions with its patented oxy-fuel combustion and supercritical CO2 cycle. These plants produce clean, on-demand power at low cost and address critical issues of air quality and land use, virtually eliminating air emissions including nitrogen oxides , sulphur oxides, and carbon dioxide (CO2).
In the fall of 2021, NET Power proved its technology at its La Porte demonstration site, culminating with synchronization to the Texas electric grid. NET Power announced a partnership with Baker Hughes in February of this year to develop and market a suite of integrated equipment and technologies, including supercritical CO2 turboexpanders. This utility-scale serial number one project serves as the commercial launch pad for NET Power’s core process technology, and will help boost other projects already in development and providing the pathway for global deployment of this decarbonization platform.
“Having demonstrated the capability of the technology at La Porte, and having partnered with Baker Hughes to commercialize the NET Power system, we are excited to accelerate the deployment of this game changing technology,” said Ron DeGregorio, CEO of NET Power. “This plant allows for the quick ramp up in NET Power’s global deployments, providing a clear and meaningful pathway to near emission-free reliable power.”
NET Power selected the project located at an Occidental hosted site near Odessa, Texas from a slate of early adopter project candidates. The project targets approximately 300 megawatts (MW) of carbon-free power and will transport captured CO2 to a permanent underground sequestration location through Occidental’s existing Permian CO2 handling infrastructure and operations.
NET Power says it will engage its strategic shareholders to support the project with resources. Occidental will provide CO2 transportation and sequestration and power off-take, while Constellation Energy Generation offers expertise in plant operations and power off-take. Key integrated process equipment and technologies will be provided by Baker Hughes and 8 Rivers Capital will be on the team for project development support.
Richard Jackson, President, U.S. Onshore Resources and Carbon Management, Operations, Occidental said, “We are excited to support NET Power’s first utility-scale project. This plant will accelerate plans to reduce carbon emissions to help achieve net zero goals. The project allows both companies to develop best practices that use NET Power’s technology to provide near emissions-free power for our Permian operations and future Direct Air Capture sites.”
NET Power says the project builds on years of internal development of a standardized and modularized design concept. Pre-Front End Engineering and Design (Pre-FEED) studies have been completed with full FEED work to commence in the first quarter of 2023.
Chris Barkey, CTO – Industrial & Energy Technology at Baker Hughes, remarks “We are excited to support the development of the NET Power system. Our technology is robust, and the program is progressing well to deliver a world-class 300MW class suite of equipment enabling utility-scale operation in 2026, and a rapid ramp-up in commercial deployments thereafter.”
According to the North Carolina-based company, the project will be financed through a combination of NET Power’s current capitalization program, investments from existing shareholders, and new project financing. Additionally, NET Power is pursuing government support available at the federal, state, and local level, with special focus on grant and loan opportunities arising from the Bipartisan Infrastructure Law.
The long-term opportunity for NET Power projects is further improved with the Inflation Reduction Act and its enhancements to the 45Q carbon capture tax credit available to capturing facilities. To qualify for these credits, electric generation units must be designed to capture at least 75 percent of carbon dioxide emissions, a number which NET Power facilities easily exceed.
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