- Continued site work at La Porte demonstration facility in
preparation for upcoming equipment validation campaigns; Baker
Hughes combustor test rig on schedule to ship to La Porte in Q3
2024; first phase of testing on schedule to begin in Q4 2024
- Advanced Front-End Engineering and Design (FEED) work for
Project Permian, the Company’s first utility-scale project in West
Texas; FEED on track to conclude in Q4 2024; signed Limited Notice
to Proceed (LNTP) with Baker Hughes to release all long-lead
materials required to meet the schedule for the first utility-scale
turboexpander
- Accelerated prospecting and site evaluation for multiple
originated projects in North America; filed interconnection
application with Midcontinent Independent System Operator (MISO)
for OP1, the Company’s first originated project; advanced projects
in Alberta Electric System Operator (AESO) and California
Independent System Operator (CAISO) markets to project feasibility
stage
NET Power Inc. (NYSE: NPWR) (“NET Power” or the “Company”) today
reported results for the second quarter of 2024.
Danny Rice, Chief Executive Officer of NET Power, commented,
“The team excelled through another busy quarter. Significant work
continues on the origination front as we pinpoint the ideal markets
and locations to optimize the economics of future deployments, with
several near-term targets identified in North America.
Later this year, we expect to complete FEED for Project Permian
and kick off the first of four phases of equipment validation with
Baker Hughes at our La Porte demonstration facility.
We continue to advance strategic discussions with our current
and prospective supply chain partners to ensure we have the
capabilities to meet the growing demand for clean, affordable and
reliable power.”
Business Update
Baker Hughes equipment validation at La Porte demonstration
facility – The Company continues to prepare its La Porte facility
in advance of upcoming equipment validation campaigns with Baker
Hughes. The La Porte site work includes enhancements to piping and
instrumentation, relocation of CO2 compression equipment and
updates to the distributed control system.
The first phase of testing is on schedule to begin in the fourth
quarter of 2024 and subsequent phases are expected to continue
through 2026. The equipment validation test campaigns at La Porte
are intended to de-risk the utility-scale turboexpander, which will
be deployed to Project Permian and future projects. Phases include:
(i) oxy-fuel burner configuration selection, (ii) single
demonstrator combustor can validation, (iii) single utility-scale
combustor can validation, and (iv) full demonstrator turboexpander
validation.
The first two phases of equipment validation will utilize a
Baker Hughes combustor test rig, which is undergoing assembly in
Baker Hughes’ Florence, Italy, facility and is on schedule to ship
to La Porte in the third quarter of 2024.
Project Permian – At NET Power’s first utility-scale project
located near Midland-Odessa, FEED continues with licensed EPC
partner Zachry Group. FEED remains on schedule to conclude in the
fourth quarter of 2024 and will form the basis for NET Power’s
standardized utility-scale plant design. Orders for long-lead
components have commenced and will continue throughout 2024.
During the quarter, NET Power signed an LNTP with Baker Hughes
to release all long-lead material needed to maintain the schedule
for the utility-scale turboexpander. Orders for long-lead
components will continue throughout 2024. Initial power generation
for Project Permian remains on schedule to occur between the second
half of 2027 and first half of 2028.
Origination – NET Power accelerated prospecting and site
evaluation for multiple originated projects in North America during
the quarter. For NET Power’s first originated project, OP1, the
Company filed its interconnection application with MISO and
commenced the first phase of community and stakeholder engagement.
In addition, NET Power’s sequestration partner for OP1 submitted
Class VI permit applications with the EPA.
Origination efforts were also advanced across North America,
with projects in AESO and CAISO markets advancing to project
feasibility stage.
Financial Updates
During the second quarter, cash flow used in operations was
approximately $8 million and cash flow used for capital
expenditures was approximately $8 million, primarily for La Porte
and Project Permian. The Company ended the second quarter of 2024
with approximately $609 million of total cash, cash equivalents and
investments, as compared to approximately $626 million in the first
quarter of 2024.
Conference Call
NET Power will host a conference call to discuss second quarter
2024 financial results beginning at 8:30 AM ET on Tuesday, August
13. To access the live audio webcast of the conference call, please
visit NET Power’s investor relations website at ir.netpower.com. To
participate by phone, dial 877-407-8014 (domestic) or +1
201-689-8053 (international).
An archived webcast will be available following the call.
About NET Power
NET Power (NYSE: NPWR) is a clean energy technology company
developing its proprietary NET Power Cycle, which transforms
natural gas into clean, reliable and affordable power. The Company
is on a mission to deploy its utility-scale plants across the world
by partnering with power producers, energy producers, technology
providers, local communities and other stakeholders. NET Power was
founded in 2010 and has offices in Durham, North Carolina, (HQ) and
Houston, Texas.
Cautionary Note Regarding Forward-Looking Statements and
Projections
Certain statements in this release may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the Private Securities Litigation Reform Act of
1995, each as amended. Forward-looking statements provide current
expectations of future events and include any statement that does
not directly relate to any historical or current fact. Words such
as “anticipates,” “believes,” “expects,” “intends,” “plans,”
“projects,” or other similar expressions may identify such
forward-looking statements. Forward-looking statements may relate
to the development of NET Power’s technology, the anticipated
demand for NET Power’s technology and the markets in which NET
Power operates, the timing of the deployment of plant deliveries,
and NET Power’s business strategies, capital requirements,
potential growth opportunities and expectations for future
performance (financial or otherwise). Forward-looking statements
are based on current expectations, estimates, projections, targets,
opinions and/or beliefs of the Company, and such statements involve
known and unknown risks, uncertainties and other factors. Actual
results may differ materially from those discussed in
forward-looking statements as a result of factors, risks and
uncertainties over which NET Power has no control. These factors,
risks and uncertainties include, but are not limited to, those
described under the headings “Risk Factors” and “Cautionary Note
Regarding Forward-Looking Statements” in the Company’s Annual
Report on Form 10-K for the year ended December 31, 2023, its
subsequent annual reports on Form 10-K and quarterly reports on
Form 10-Q, and in its other filings made with the SEC from time to
time, which are available via the SEC’s website at www.sec.gov.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and NET Power assumes no obligation and does not intend
to update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise. NET Power
does not give any assurance that it will achieve its
expectations.
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version on businesswire.com: https://www.businesswire.com/news/home/20240812990737/en/
Investor Relations Contact: investors@netpower.com
NET Power Media Contact: Sam Fabens
netpower@voxglobal.com
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