Entergy has signed a memorandum of understanding with Mitsubishi Heavy Industries Group to explore carbon capture technology for natural gas power plants. The partnership aims to reduce CO2 emissions from Entergy's existing gas-fired fleet using MHI's capture systems. This is a concrete step toward retrofitting fossil generation with post-combustion capture rather than retiring plants early. Carbon capture on gas plants is expensive and unproven at scale for the US power sector. The MOU does not disclose cost targets, timelines, or which specific plants might be retrofitted. If Entergy moves to a pilot, it would test whether capture can compete with renewables plus storage on a levelized cost basis. The real test will be whether the captured carbon has a viable storage or utilization pathway in Entergy's service territory. For carbon credit markets, this matters because capture projects can generate credits under 45Q tax credits and voluntary carbon markets. But without clear monitoring and verification plans, the credits are speculative. The MOU is a signal, not a project. Watch for engineering studies and storage site agreements before assuming real tons will be captured.
