Carbon Capture-Enabled Gas Power: A Net Zero-Ready Investment Opportunity

The global energy transition is accelerating, driven by the urgent need to decarbonize power generation while maintaining energy security. In this evolving landscape, carbon capture-enabled gas power plants are emerging as a critical bridge between fossil fuels and renewable energy. Strategic partnerships are now unlocking scalable, revenue-generating solutions that align with net-zero goals. Rolls-Royce, ASCO Carbon Dioxide Ltd, and Landmark Power Holdings are at the forefront of this innovation, demonstrating how collaboration can transform gas power into a clean, economically viable asset.

Strategic Partnerships: A Blueprint for Decarbonization

Rolls-Royce, a leader in power systems, has partnered with ASCO and Landmark Power to develop a groundbreaking carbon capture project using mtu gas reciprocating engines. This collaboration, formalized through a Memorandum of Understanding (MoU) in April 2024, aims to create scalable solutions for clean power generation while capturing CO₂ emissions [1]. The project leverages Rolls-Royce’s expertise in decentralized power generation, Landmark’s FLEXPOWER PLUS® concept for high-efficiency combined heat and power, and ASCO’s patented carbon capture technology [1].

A first-of-its-kind plant in Nottinghamshire, UK, is already under construction, utilizing mtu 20V4000 gas engines to generate electricity for the local grid while capturing CO₂ for industrial reuse. This initiative not only addresses intermittency in renewable energy systems but also positions gas power as a transitional asset in the net-zero era [4]. The project’s success hinges on its ability to integrate advanced gas engines with carbon capture, a model that could be replicated globally.

Revenue-Generating Models: Monetizing Carbon Capture

One of the most compelling aspects of this partnership is its revenue-generating potential. The captured CO₂ is being sold to industries such as food production, e-fuels, and sustainable aviation fuel (SAF), creating a circular economy for carbon. An offtake agreement with BUSE Gases Ltd, signed before the plant’s commissioning, ensures a steady demand for the CO₂ produced [2]. This model transforms carbon capture from a cost center into a profit center, addressing a key barrier to adoption.

Landmark Power emphasizes that its approach reduces carbon footprints by up to 95% while maintaining the reliability of gas-fired power [3]. By monetizing CO₂ as a resource, the project aligns with global trends in carbon utilization, where industries are increasingly seeking sustainable feedstocks. For investors, this represents a dual opportunity: supporting decarbonization while tapping into growing markets for low-carbon industrial inputs.

Broader Implications: Scaling the Energy Transition

The partnership’s impact extends beyond its immediate project. Rolls-Royce’s SMR development—supported by UK government contracts and a £6 billion U.S. federal grant—complements its carbon capture efforts, positioning the company as a multifaceted player in the low-carbon energy transition [2]. Meanwhile, ASCO’s carbon capture technology is being adapted for other applications, including hydrogen production and industrial decarbonization, broadening its market reach.

This synergy between nuclear and gas-based carbon capture solutions highlights a strategic advantage: diversification. As regulatory frameworks evolve and carbon pricing mechanisms gain traction, companies with modular, adaptable technologies will dominate the market. The U.S. Nuclear Regulatory Commission’s recent approvals of advanced reactor designs, including Rolls-Royce’s SMRs, further signal a favorable environment for innovation [2].

Investment Outlook: A Net-Zero-Ready Sector

For investors, the convergence of carbon capture and gas power presents a unique opportunity. According to a report by BloombergNEF, carbon capture and storage (CCS) could account for 15% of global emissions reductions by 2050, with the market valued at over $1 trillion [5]. The partnership between Rolls-Royce, ASCO, and Landmark not only taps into this growth but also mitigates risks through diversified revenue streams and government support.

Conclusion

The collaboration between Rolls-Royce, ASCO, and Landmark Power exemplifies how strategic partnerships can drive the energy transition. By combining cutting-edge technology with scalable business models, these companies are redefining gas power as a net-zero-ready asset. For investors, this represents more than a technological breakthrough—it’s a gateway to a future where decarbonization and profitability coexist.

Source:
[1] Rolls-Royce, Landmark and ASCO collaborate on CO2 recovery power generation solutions [https://www.rolls-royce.com/media/press-releases/2024/08-04-2024-mtu-rr-landmark-and-asco-collaborate-on-co2-recovery-power-generation-solutions.aspx]
[2] Pioneering Carbon Capture & Utilization (CCU) project [https://www.ascoco2.com/en/about-us/news/details/asco-landmark-power-holdings-pioneering-carbon-capture-utilization-ccu-project-nears-completion]
[3] LMPH Achieves Milestones in Low Carbon Power Generation Mission [https://www.energy-focus.net/landmark-power-holdings-lmph-achieves-milestones-in-low-carbon-power-generation-mission/]
[4] Carbon capture for mtu gas engines [https://www.modernpowersystems.com/analysis/carbon-capture-for-mtu-gas-engines/]
[5] BloombergNEF, "Carbon Capture and Storage Market Outlook" (2024) [https://www.bloombergnef.com/carbon-capture-and-storage-market-outlook]