Developer NET Power delays $1B Texas net-zero power plant start

AI generated summary

NET Power Inc., the company building the first utility-scale gas-fired power plant with near zero carbon emissions in Texas, has announced a delay in the completion of the project. The anticipated startup of the plant, which is located in the state's Permian oil and gas region, has been pushed back to sometime between the second half of 2027 and the first half of 2028. The cost of the project has also increased to $1 billion. The facility aims to remove 860,000 tons of carbon dioxide per year through NET Power's proprietary process of carbon capture and storage.

The delay is attributed to extensive lead times for critical components, resulting in supply chain disruptions. The company cited long waits for distribution transformers and other components as a bottleneck issue in the energy industry. Front-end engineering and design for the project are expected to be completed in 2024, and NET Power plans to deploy a second utility-scale plant once the supply chain bottleneck is resolved. The company aims to license 30 plants per year by 2030.