The original joint venture between NRG and JX Nippon developed the US$1 billion carbon capture unit at NRG’s W.A. Parish power plant in Fort Bend County, Texas. Petra Nova was idled in May 2020 amid a collapse in oil and power prices at the outset of the COVID-19 pandemic, but JX Nippon aims to restart the carbon capture facility in 2023. NRG will continue to operate the CCS processing facility and the gas-fired cogeneration plant owned by Petra Nova, and NRG will also continue to provide various site services to Petra Nova.
The deal was led by M. Cleve Lancaster, assistant general counsel at NRG Energy, assisted by Sidley partners Robert G. Stephens (Energy and Infrastructure) and John T. Schaff (45Q Tax Credit Issues), counsel Josh E. Sutton (Project Finance Issues), and managing associate Mario R. Samos (Energy and Infrastructure).