Durham, N.C., June 15, 2012 — Toshiba Corp. has joined The Shaw Group and Exelon Corp. to develop NET Power’s gas-fired power generation technology. Last week, Shaw announced that it was making an investment in NET Power LLC.
NET Power’s system generates lower cost electricity while producing little-to-no air emissions. The technology uses an oxyfuel, high pressure, supercritical carbon dioxide cycle.
Unlike traditional carbon capture technologies, the NET Power cycle inherently produces pipeline-ready carbon dioxide for sequestration or use in enhanced oil recovery without reducing plant efficiency or increasing costs.
EOR is a decades-old technology that uses carbon dioxide to extract stranded oil from mature oil fields while sequestering carbon dioxide below ground. The Department of Energy estimates that nearly 84 billion barrels of oil are recoverable using EOR in the US and 500 billion to 1 trillion barrels are recoverable worldwide; however, current sources of carbon dioxide for EOR are only meeting a small fraction of that need, as most industrial carbon capture technologies cannot produce cost-effective, EOR-ready carbon dioxide.
Under the current program, Shaw, Toshiba, Exelon and NET Power will develop a 25 MW NET Power natural gas plant that is expected to begin operating in mid-2014. Construction of the first 250 MW plant is expected to begin in late 2014 or early 2015.
NET Power will be responsible for overall project development and systems engineering; Toshiba will design, test and manufacture a combustor and turbine for the NET Power system; Shaw will provide engineering, procurement and construction services; and Exelon will support the development and operations of the 25 MW plant by selecting the site, obtaining permits and commissioning the facility.
Shaw will also provide up to $50.4 million in cash and in-kind services to the effort, subject to certain milestones being met, acquiring up to 50 percent of NET Power as those milestones are completed during the four phases of the project. Jefferies & Co., Inc. served as sole financial advisor to NET Power on the transaction.