NET Power Inc. Q3 FY2025 earnings call

NET Power Inc. is focused on transforming natural gas into the lowest cost form of clean, reliable power. The company analyzed the power sector's unprecedented load growth and the need for faster deployment of clean power. It announced a pivot to prioritize speed to market and technology readiness. The company has partnered with Entropy to accelerate the deployment of clean gas projects with post-combustion carbon capture technology. It detailed projects in West Texas and Northern MISO, including the West Texas project with a 60 megawatt module targeting financial decision in 2026 and commercial operation in 2028 or 2029 with over 90% carbon capture, and the Northern MISO project targeting FID in 2027 and commercial operation in 2029 leveraging gas turbines paired with Entropy's PCC technology.

No specific financial performance and revenue contribution data available for product segments as per the transcript

The company expects to finalize the joint venture (JV) with Entropy in 2026, along with preparations to final investment decision (FID) for the first phase of the West Texas project. The West Texas project's first phase aims for commercial operation in 2028 or 2029. The Northern MISO project targets FID in 2027 and commercial operation as early as 2029. Project permitting for the first power in West Texas is on track for 2028 with a levelized cost of energy (LCOE) under $80 per megawatt hour.

Persistent inflation in the energy industry could increase costs for the first facility. Delays in permitting sequestration wells and CO2 pipelines. No binding obligation on either NET Power Inc. or Entropy to consummate the transaction with Entropy.

Q: With the pivot announced, what makes NET Power Inc. uniquely positioned to take advantage of this opportunity compared to others?

A: NET Power Inc. has actionable projects in the right areas with high-quality sites ready for deployment. Its sites work well for both its oxy-combustion technology and post-combustion carbon capture technology, allowing it to accelerate deployment of clean gas technology sooner than competitors.

Q: Why did NET Power Inc. choose to partner with Entropy?

A: Entropy has operational experience with its solvent technology, which is a TRL nine product. The partnership allows Entropy to accelerate deployment of its technology in the U.S. power market and NET Power Inc. to accelerate deployment of clean power projects while staying true to its mission.

Q: Talk about the financing strategy for Phase one and follow-on projects.

A: Projects with gas turbines and post-combustion carbon capture have proven bankable technologies, enabling project financing. The equity capital burden is less intensive per megawatt than NET Power Inc. projects, making the deployment quicker and more accretive to equity dollars.

Q: How are off-takers viewing the solution for data center power needs?

A: Conversations with off-takers are more active now as projects are on an accelerated timeline. The urgency of power for data centers makes the accelerated deployment of clean firm power solutions appealing.

Q: What enables the sub $80 LCOE in the Permian compared to roughly 100 in MISO?

A: Lower cost of natural gas feedstock in West Texas and the ability to utilize CO2 with industrial value, capturing more value on the CO2 side which reduces power prices.

Q: Rationale for being a public entity with the new strategy?

A: Being a public company provides unparalleled access to capital. The new strategy with actionable projects that can use capital sooner makes it compelling to be public, allowing access to capital for accretive investments that align with the company's mission.