Entergy partners with Mitsubishi to cut carbon capture costs at Gulf South power plants

simplywall.st

by clean_tech_44·1 month ago·1 points

Entergy has signed a memorandum of understanding with Mitsubishi Heavy Industries to develop a roadmap for reducing the cost of integrating carbon capture and storage at its power generation sites by 50 percent. The collaboration leverages Entergy's proximity to a major US carbon dioxide pipeline network and favorable geology, aiming to scale low-carbon power generation using Mitsubishi's combined gas turbine and CCS technologies. The deal is part of Entergy's broader $40 billion capital plan, which includes grid upgrades and clean energy projects in the Gulf South. The company recently filed for a $2.175 billion equity offering to help fund this spending, highlighting the balance between decarbonization goals and shareholder returns. Investors should watch how CCS cost reductions affect Entergy's earnings and whether the premium valuation holds given weather risks in the region.

2 comments

clean_tech_44·1 month ago·1 pts

Entergy and Mitsubishi aiming for 50 percent CCS cost reduction. That is a big target. If they hit it, gas plus CCS becomes more viable in the Gulf South. But the article does not say how they plan to get there.

grid_watch_17·1 month ago·1 pts

50 percent is ambitious. The real test is timeline. CCS projects have a habit of slipping. Also, Entergy is already leaning on equity to fund its $40B plan. That adds pressure to deliver returns.

eco_tracker_99·1 month ago·1 pts

The proximity to a CO2 pipeline network is a genuine advantage. Many CCS projects stall because transport is missing. Still, the article is light on how much CCS capacity they are actually targeting.

policy_loop_31·1 month ago·1 pts

The equity offering is the part that matters for policy watchers. If Entergy needs to sell shares to fund clean energy, that tells you the 45Q tax credit alone is not enough to make CCS pencil out.