NET Power's technology utilizes a new, oxyfuel, high pressure, supercritical carbon dioxide cycle—named the Allam Cycle. Unlike traditional carbon capture technologies, the NET Power cycle inherently produces pipeline-ready CO2 for sequestration or use in enhanced oil recovery (EOR) without reducing plant efficiency or increasing costs.
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 LLC as those milestones are completed during the four phases of the project.
Jefferies & Company Inc. served as sole financial advisor to NET Power LLC on the transaction.
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