US energy company Competitive Power Ventures (CPV) has announced that it will build a $3bn, 1.8GW combined-cycle gas power station in West Virginia.

The plant will include carbon capture technology, and CPV’s choice of location was swayed by the 45Q federal tax credit introduced to incentivise carbon capture and sequestration, as well as a state legislation establishing rules for carbon storage.

The credit, named after section 45Q of the US’ Internal Revenue Code, was introduced in 2008 and expanded in the December 2020 Inflation Reduction Act.

Joe Manchin, US senator for the state, said: “The Inflation Reduction Act is already having a positive impact for the people of West Virginia and carbon capture utilisation efforts.

Gary Lambert, CPV’s chief executive, added: “This project and technology represent a significant step forward for our nation in deploying low carbon, dispatchable generation critical to maintaining reliability as we address our collective concerns regarding climate change.”

Some 1,000 workers will be employed during the plant’s construction. Work is presently under way on the regulatory approval process and the completed project is due to enter service towards the end of the 2020s.