Industry: Specialty Industrial Machinery / Heavy Electrical Equipment
About Company:
NET Power is a clean energy technology firm based in Durham, North Carolina. It develops and commercializes the NET Power Cycle, a proprietary natural‑gas power generation system that captures nearly all CO₂ emissions and eliminates typical air pollutants while generating low‑cost, reliable electricity
Company History:
- Founded on January 8, 2010, as a spin‑out to commercialize the “Allam Cycle” developed by Rodney Allam in collaboration with 8 Rivers
- Key milestones:
- 2014: Exelon (now Constellation) investment.
- 2016–2018: Built and operated the La Porte, Texas demonstration plant (first large‑scale supercritical CO₂ plant)
- 2021: The demonstration plant synced to the grid
- 2022: Baker Hughes partnered on turboexpander development.
- 2023: Merged via SPAC with Rice Acquisition Corp II (going public June 8, 2023); launched Project Permian — their first planned commercial‑scale power plant
Company Advantage Over Competitors:
- Emissions‑free power from natural gas using the Allam‑based NET Power Cycle.
- Modular, 24/7 firm power (load‑following capable) with high thermal efficiency.
- Compact footprint, minimal water usage, and cost‑effective design
- Leading strategic partnerships (e.g., Baker Hughes, Occidental, SK Group, Lummus) strengthen both technical execution and project scale potential
Risk Factors to Consider:
- High capital costs: Project Permian FEED estimated $1.7B–$2B, well above initial projections, pressuring timelines and economics
- Execution risk: Complex scaling from demonstration to utility‑scale involves engineering, permitting, and cost control challenges.
- Liquidity burn: While liquidity (e.g. $533M end‑2024, $500M+ in Q1 2025) is strong, continued capex and project spending could stress finances
- Regulatory/tax changes: Economic viability is tied to incentives like the U.S. 45Q tax credit—any shifts could impact returns.
- Dependence on partners: Delays or failures from suppliers or collaborators could cascade across project timelines.
What Makes This Company Special or a Good Investment?
- Unique clean energy tech: The NET Power Cycle enables zero‑emission, continuous power from natural gas—a rare combination in power generation.
- Clear path to commercialization: With Project Permian and modular plant designs geared for scale, they’re transitioning beyond demonstration
- Strong liquidity and investor support: Backed by Occidental, SK Group, Rice family, with solid cash reserves to support near‑term expansion
- First‑mover advantage in a niche yet growing market: Clean natural gas power that integrates carbon capture seamlessly.