NET Power Inc. Q2 FY2025 earnings call

• Energy market demand driven by AI and data centers, with grid load growth from AI outpacing generation. NET Power's cycle can integrate with various energy solutions for auxiliary load. - Project Permian LCOE improved from over $150 to under $100 per MWh. SN1 value engineering: pipe quantities down 20%, diameter reduced 25%, site layout shrunk 25%; ASU equipment costs 15% lower, installation cost reduced 10%; digital twin progress. - LaPorte facility: turboexpander validation program with Baker Hughes, infrastructure repairs, DCS upgrade, increased testing cadence; Phase 1 completion expected this year, Phases 2-4 planned for 2026-2027.

No specific product segment financial performance or revenue contribution % discussed as the transcript does not break down by traditional product segments.

• Project Permian LCOE improved to under $100 per MWh, expecting stand-alone NET Power LCOE below $100 with integrated configuration. - Interconnect for Project Permian ready by mid-2028; NET Power core cycle FID possible late next year, online by 2030. - Gas turbines to be deployed early to mid-2028 to cover auxiliary load.

• Uncertainties in energy market demand. - Grid reliability issues. - Long interconnect queues. - Intermittency in local grids. - Potential delays in FID and project timelines.

Q: Timing and milestones for FID of SN1 or other projects, time to get them up and running with simple cycle gas turbine?

A: Interconnect for Project Permian ready mid-2028, NET Power core cycle FID late next year, online 2029-2030; gas turbines deployed early to mid-2028.

Q: Behind-the-meter opportunities with integrated approach?

A: Co-location possible with gas turbines providing reliable power first, then NET Power for decarbonization.

Q: Value engineering savings trade-offs on performance/operation?

A: Minor equipment reductions with no impact on reliability, focus on further cost reduction in next 90 days.

Q: Impact of 45Q parity on addressable market?

A: Increases U.S. energy security, makes Permian projects more economical, expands potential markets.

Q: Turbine market availability and vendor suitability?

A: Larger gas turbines sold out, looking for flexible, smaller/medium gas turbines, not ready to name vendors yet.

Q: Design change impact on business model and licensing?

A: Enhances business model, flexible in integrating gas turbines, GT agnostic.

Q: Cost trajectory to $100 per MWh and learning expectations?

A: Starting below $100 with integrated product, expects to learn from first deployments to reduce costs over 10-20 deployments.

Q: Cash burn expectations and offtake timeline?

A: Cash burn includes G&A and LaPorte testing, expects to start getting offtake indications soon, gas turbine FID possible in next 60-120 days, NET Power FID mid-2026.