NET Power Inc. Q4 FY2025 earnings call

1. Pivoted away from oxycombustion as primary near-term commercial vehicle, focusing on GT plus PCC (combined cycle gas turbine paired with post-combustion carbon capture) which is a more direct route to transform natural gas into low-cost clean firm power. 2. Macro backdrop: Significant build-out of power generation infrastructure in US, driven by AI data centers, industrial re-onshoring, electrification, with ERCOT as ground zero. Policy support for CCS is strong, 45Q tax credit provides parity between CO2 sequestration and utilization for EOR. 3. Business progress: - Product development: Integrated clean power product with Siemens gas turbines and Entropy's post-combustion capture system, fully pre-engineered, air-cooled, reducing execution risk. Passed conceptual design review, working on detailed design, equipment packages progressing. - Project permit: FID target is second half of 2026, targeted commercial operations date early 2029. Four work streams in parallel: product and project engineering, long lead equipment commitments, project financing, offtake. Site control in place, grid interconnection progressing. - Commercial pipeline: Securing offtake is key, advanced discussions with Oxy, growing pipeline of prospective offtake relationships across verticals, including potential behind the meter arrangement with hyperscale data center developer in West Texas. Site can scale to approximately 800 megawatts.

1. FID target is second half of 2026 with targeted commercial operations date of early 2029. 2. Goal for this year is to have a signed offtake agreement or MOU at pricing at or above $100 per megawatt hour.

Q: On the pricing on the offtake, give perspective on competitive landscape in West Texas.

A: Danny said wholesale power prices in ERCOT have increased, forward curve for 28-30 is up, and for new contracted firm delivery, chatter of prices north of $100 per megawatt hour.

Q: Update on project costs for Project Permian.

A: Mark said project costs are in range of 475 to 575, with equity share of around $100 million for first project if project financing is secured.

Q: Update on commercial pipeline beyond Project Permian.

A: Focus is on West Texas, with site that can accommodate 800 megawatts, and focus is economic and opportunity driven.

Q: Characterize why potential customers are interested in NetPower solution.

A: Danny said it's about speed to power, reliability, and certainty of capture, with partnership with Entropy providing proven PCC solution.

Q: On off-take conversations with hyperscalers, what's needed to get them comfortable.

A: Mark said it's about the actuality of projects, relationships, product size matching demand, and use of EOR.

Q: On equity financing and project financing.

A: Danny said targeting 65% debt, 35% equity for Project Permian, with equity portion net to NetPower around $100 million.

Q: On cost reductions in larger deployments.

A: Mark said it's from minimal engineering, supply chain leverage, and gaining productivity in field.

Q: On oxycombustion.

A: Both partners have suspended JDA and continue to evaluate viability of industrial product.