The Shaw Group Inc. will work with Net Power LLC and Exelon to develop a new technology for gas-fired power generation the companies say could result in major benefits for electricity producers and consumers, energy security and the environment.

The new technology, called Net Power, is based on a high-pressure, supercritical carbon dioxide oxyfuel power cycle. The process produces cost-effective electric power with little to no air emissions. The process differs from other methods of generating power because it doesn’t require expensive add-on carbon-capture systems.

The primary byproduct of Net Power is pipeline-quality, high-pressure carbon dioxide, which can be used for enhanced oil recovery, according to Shaw.

Pumping carbon dioxide into the ground could potentially increase oil reserves in the United States and worldwide, according to Shaw. Meanwhile, selling the carbon dioxide provides revenue for Shaw and its partners.

Under the agreement, Shaw will acquire a substantial but undisclosed piece of Net Power, the technology developer, and exclusive rights to engineer and build Net Power plants. Power company Exelon will provide the property and get the permits for a small-scale testing site. Exelon will also have options for the first commercial plants when the development is complete.

Shaw, Exelon and Net Power are working with an unnamed manufacturer to design and build the turbine required for the new technology. Initially, the process will use natural gas, but the team expects the technology can be modified so oil can also serve as a fuel source.