West Texas Is About to Make Carbon Capture History

Net Power and Entropy are finalising a deal to build America's first commercial post-combustion carbon capture gas plant in West Texas

2 Jun 2026

West Texas is about to make carbon capture history. A joint development agreement being finalized between Net Power and Entropy would pair power generation with a capture system already running at 90% CO2 removal efficiency at Alberta's Glacier Gas Plant. Most US carbon capture projects have relied on technology still unproven at scale. This one arrives with years of real operational data.

That distinction matters enormously for project risk. Entropy's post-combustion system has hit commercial-scale benchmarks that few US-deployed capture technologies can match, and it's been doing so consistently. Earlier domestic pairings largely staked their business cases on demonstration-phase hardware.

Phase I of Project Permian, sited near Midland, targets 80 megawatts of net electrical output using gas turbines paired with Entropy's system. Commercial operations are expected by early 2029. Occidental is advancing toward a CO2 offtake arrangement that would feed the captured carbon into its enhanced oil recovery infrastructure in the basin, closing the loop on-site.

Securing that offtake is the decisive next step. CEO Danny Rice confirmed Net Power has engaged a strategic advisor to accelerate negotiations, noting that a formalized power purchase agreement will catalyze project financing and keep the final investment decision on track for the second half of 2026. Entering Q2 with roughly $319 million in cash, the company has the runway to see those talks through.

Risks remain. Volatile federal clean energy policy and the complexity of integrating third-party technology both carry execution exposure Net Power has flagged in its own disclosures. Even so, proven capture performance, a defined site, an active sequestration negotiation, and capital on hand put Project Permian on firmer commercial ground than most comparable US ventures at this stage. For an industry still searching for its first replicable clean gas model, that combination is rare.