Clean energy company NET Power is delaying the world’s first utility-scale gas plant with carbon capture, citing global supply chain concerns.

In an earnings call on Tuesday, CEO Danny Rice said the project, known as Project Permian, would be delayed to “between the second half of 2027 and the first half of 2028.” The project, which was expected to generate electricity with nearly zero emissions, was supposed to come online in 2026.

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“The global energy supply chain is lagging current market demand for new energy infrastructure, which means excessive lead times across many critical components for years to come,” Rice said. “Our supply chain strategy is intended to alleviate these market constraints, and we must prudently incorporate the current supply chain challenges into our project timing and planning.”

Project Permian, which was unveiled last November, was anticipated to generate 300 megawatts of energy and deliver almost emissions-free electricity to the grid. The company previously adjusted the cost of the project to be approximately $1 billion, an increase from an initial price tag of between $750 million and $950 million.

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NET Power’s technology works by combusting natural gas with pure oxygen in a combustor, producing carbon dioxide and water. It then mixes it with recirculated carbon dioxide and uses it to spin a turboexpander, producing power. When the turboexpander exhaust cools, water and byproducts are removed. The remaining carbon dioxide is then compressed and captured. The captured carbon dioxide is then sequestered and sold to the industry, according to NET Power.

The company plans to use Occidental Petroleum’s existing infrastructure to move trapped carbon dioxide to a permanent storage location. NET Power’s plant will also provide power for Occidental’s oil and gas operations.