Entergy (NYSE: ETR) and Mitsubishi Heavy Industries (MHI) Group have signed a memorandum of understanding to develop a roadmap targeting a 50% reduction in overall costs for carbon capture and storage (CCS) projects, according to a press release from the companies.

The agreement involves two MHI Group subsidiaries — Mitsubishi Heavy Industries America (MHIA) and Mitsubishi Power Americas — and covers the integration of gas turbine combined cycle (GTCC) technology with carbon dioxide capture and storage systems. MHI Group's proposed solution centers on M501JAC gas turbines from Mitsubishi Power Americas paired with carbon capture technology from MHIA.

Entergy's power generation sites are positioned near what the company describes as the largest existing carbon dioxide pipeline network in the United States. The company also states that its operating region contains subsurface geology suitable for permanent underground CO2 storage. Entergy serves more than 3 million customers across Arkansas, Louisiana, Mississippi, and Texas.

"Scale, strong partnerships, and standardization are keys to success," said Kimberly Cook-Nelson, Entergy's Chief Operating Officer. "We are dedicated to providing reliable, affordable, clean power for our customers and communities."

"This collaboration reflects our commitment to advancing practical decarbonization solutions that support both energy reliability and economic growth," said Bill Newsom, President and CEO of Mitsubishi Power Americas, adding that the companies aim to create "a repeatable model" for commercializing integrated gas turbine and CCS solutions.

The MOU builds on an existing relationship between Entergy and Mitsubishi Power Americas, which previously collaborated on scaling a GTCC program. Financial terms of the agreement were not disclosed.