Entergy, Mitsubishi Aim To Halve CCS Costs In Louisiana

Entergy and Mitsubishi Heavy Industries Group signed a memorandum of understanding on July 15, 2026. The deal targets a 50 percent cost reduction for carbon capture and storage at Entergy's Gulf Coast power plants. It pairs Mitsubishi's gas turbines with its capture technology, aiming to make CCS commercially repeatable across the region.

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What Did Entergy And Mitsubishi Just Agree To?

Entergy is an integrated energy company. It produces, transmits, and distributes electric power across Louisiana, Arkansas, Mississippi, and Texas.

Entergy signed the MOU with Mitsubishi Heavy Industries (MHI) Group on July 15, 2026. The agreement sets a goal of cutting carbon capture and storage costs by 50 percent at Entergy's power generation sites.

Two MHI Group subsidiaries are involved: Mitsubishi Heavy Industries America and Mitsubishi Power Americas. Together they plan to pair M501JAC gas turbines with carbon capture technology from MHIA.

The integrated approach combines gas turbine combined cycle power generation with carbon capture and storage in a single, standardized package. MHI Group describes the goal as a repeatable model that other utilities could copy at their own sites.

"Achieving meaningful decarbonization will require more than breakthrough technologies."

Bill Newsom, President and CEO, Mitsubishi Power Americas

The MOU builds on years of prior collaboration. Entergy and Mitsubishi Power Americas have already worked together scaling gas turbine combined cycle programs across Entergy's fleet. The companies say that history gives the new roadmap a head start.

Why Does A 50 Percent Cost Cut Matter So Much For CCS?

MHI’s CO₂ capture pilot plant at the Himeji No. 2 Power Station tests capture technology using flue gas from gas turbines. The Entergy-MHI partnership aims to apply a more standardized version of this integrated power and capture model in the United States.

Carbon capture remains one of the most expensive tools in the decarbonization toolkit today. A cost cut of this size would change which projects actually pencil out financially for utilities.

The Shell-operated Quest facility in Alberta captured CO2 at roughly 200 Canadian dollars per tonne through 2021 (Globe and Mail, 2021). Saskatchewan's Boundary Dam project has reported capture costs as low as 100 to 120 Canadian dollars per tonne. That project has also faced repeated cost overruns and delays.

Those figures explain why utilities keep chasing cheaper capture methods, a search echoed elsewhere in the industry through falling direct air capture costs. Mitsubishi's pitch is that standardizing gas turbines and capture equipment into one package, instead of custom-building each project, is what finally moves the number.

>> RELATED: Alberta's First CCS Hub Just Started Injecting CO2

Has Any CCS Project Hit A Target Like This Before?

No large-scale CCS project has publicly documented a verified 50 percent cost reduction on a roadmap like this one. That absence of precedent is exactly why analysts and utilities will watch this partnership closely.

CCS cost declines have historically moved slower than solar and wind. That is true even though capture technology has existed commercially for more than 50 years, according to the International Institute for Sustainable Development. Other corners of the industry are experimenting with different fixes, including carbon capture-as-a-service models aimed at lowering upfront costs for smaller operators.

None of that makes the Entergy-MHI target unreachable. For now, the 50 percent figure is a stated goal on a roadmap still being built. It is not a result anyone can point to yet.

Entergy’s Lake Charles Power Station in Westlake, Louisiana, where Crescent Midstream is developing a proposed carbon capture, transport, and storage project.

What Is Entergy's Own CCS Track Record So Far?

Entergy already has one major CCS project moving through construction, and that gives the company hands-on experience the MHI roadmap can build on.

Crescent Midstream is a Carlyle Group-backed midstream company. It is developing an integrated carbon capture project at Entergy's 994 MW Lake Charles Power Station in Westlake, Louisiana.

The nearly $1 billion project would capture and transport 3 million metric tonnes of CO2 per year. It uses Samsung E&A engineering and Honeywell's carbon capture technology (Crescent Midstream, September 2024).

That volume roughly matches the annual emissions of 600,000 motor vehicles. Crescent expects the project to be finished by 2028. That timeline means Entergy will not have its own operating cost data from that site for at least two more years.

The region is also building out additional storage. Louisiana's planned offshore CO2 storage hub is still under development.

It holds permitted capacity for more than 250 million metric tons of storage. Injections are expected to begin by 2028.

Why Is The U.S. Gulf Coast Central To This Bet?

Entergy's Gulf Coast footprint gives it real geological and logistical advantages for CCS, separate from whatever cost target the MHI roadmap eventually hits.

Entergy's operations sit near the largest existing CO2 pipeline network in the United States. The region also offers subsurface geology suited for permanently storing captured CO2 (Entergy, July 2026).

Global CO2 capture volumes are set to grow sharply by 2050. The IEA's World Energy Outlook 2025 tracks an increase from 43 million metric tonnes in 2024 to 300 million metric tonnes by 2050.

"MHI's carbon capture technology is designed to deliver proven, scalable results."

Yusuke Yoshida, EVP, President of Engineered Systems Division, Mitsubishi Heavy Industries America

The Gulf Coast already anchors major hydrogen and carbon capture buildouts. These include ExxonMobil's own CCS hub in Louisiana and the Gulf Coast hydrogen hub spanning Texas and Louisiana.

As of mid-2025, more than 270 CCS projects representing $77.5 billion in announced U.S. investment were tracked nationally (Decarbonfuse, 2025). Entergy's plants sit squarely inside that same buildout.

Where This Bet Goes From Here

The MOU does not yet include a signed project or a start date. Entergy and MHI Group say more detail on specific sites and timelines will follow as the roadmap develops.

That work joins other momentum already building in the region, including multibillion-dollar Gulf Coast hydrogen deals and federal hydrogen hub funding.

The Gulf Coast already anchors much of the country's hydrogen and carbon storage investment. A working cost-reduction model at Entergy's scale would matter well beyond its own power plants.

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