- Progressed Project Permian, the Company’s first Texas-based
project located near Midland-Odessa
- Continued site preparation and modifications at La Porte test
facility ahead of multiple equipment testing campaigns with Baker
Hughes
NET Power Inc. (NYSE: NPWR) (“NET Power” or the “Company”) today
reported results for the third quarter of 2023.
Danny Rice, Chief Executive Officer of NET Power, commented, “We
continue to make good progress on all three pillars of our
previously outlined corporate strategy. Our engineering team is
hard at work finalizing the design for our utility-scale plant. At
our La Porte test facility, we’re preparing for our upcoming
combustor and turboexpander demonstrations with Baker Hughes, which
will de-risk our first utility-scale project, Project Permian, and
further refine our proprietary plant controls architecture. Our
operations team is progressing through FEED and site-related
permitting for Project Permian.”
Mr. Rice continued, “Meeting our global energy needs requires
access to affordable and reliable power, and given growing demand
for clean energy, the world needs a solution that we think only NET
Power provides. The global energy supply chain is lagging current
market demand for new energy infrastructure, which means excessive
lead times across many critical components for years to come. Our
supply chain strategy is intended to alleviate these market
constraints, and we must prudently incorporate the current supply
chain challenges into our project timing and planning.
Due to the tightness in the global supply chain, we are
incorporating a 12-month cushion into our expected schedule for
Project Permian. We’re now expecting to achieve initial power
generation sometime between the second half of 2027 and first half
of 2028. We expect the world’s current supply chain bottlenecks to
be resolved by the time we deploy our second utility-scale plant.
Fortunately for our shareholders, we over-capitalized NET Power
upon going public, and we expect to have meaningful cash on hand at
commercialization of Project Permian.
On the commercial front, we are pleased to announce progress on
our first originated project, which will be located in North
America. We’ve successfully finished our technical feasibility
study and are preparing to submit permits for grid interconnection
and carbon sequestration in 2024. We began working on this project
earlier this year, which is a testament to our commercial team’s
ability to identify good opportunities quickly. We intend to find
and secure more project opportunities in the coming years and be
ready to deliver the Energy Trifecta at scale by the end of this
decade.”
Business Update
La Porte Demonstration Facility – The Company continues
preparation at its La Porte facility for various equipment
demonstration campaigns. These testing campaigns under the Baker
Hughes Joint Development Program will provide key operational data
ahead of deploying the first utility-scale package. Current
preparations at the facility include recycle CO2 compressor
relocation, piping and instrumentation enhancements, and
distributed control system upgrades.
Project Permian – At NET Power’s first Texas-based project
located near Midland-Odessa, Front-End Engineering and Design
(FEED) is ongoing with licensed EPC partner Zachry Group. FEED is
expected to conclude in 2024 and will form the basis for NET
Power’s standardized utility-scale plant design. During the
quarter, NET Power continued release of initial bid packages for
long-lead equipment, progressed negotiations for supply and offtake
agreements, and completed the initial survey and environmental
assessment of the plant site. Capitalized expenditures associated
with ongoing development of Project Permian totaled $2.5 million in
the third quarter of 2023. NET Power expects to release initial
long-lead equipment orders for Project Permian in the first half of
2024 and to achieve initial power generation between the second
half of 2027 and first half of 2028.
Financial Outlook
During the third quarter, cash flow from operations was
approximately $0.1 million and cash flow from investing activities
totaled approximately negative $103 million, including $100 million
in cash invested into short-term interest-bearing securities. The
Company ended the quarter with approximately $645 million of cash
and short-term investments and no debt, as compared to
approximately $649 million in cash and short-term investments at
end of the second quarter of 2023.
The Company has a fully diluted share count of approximately 247
million shares, comprised of approximately 71 million shares of
Class A Common Stock outstanding; approximately 140 million shares
of Class A Common Stock issuable upon the exchange of Class B
Common Stock; approximately 20 million shares of Class A Common
Stock issuable upon the exercise of outstanding public and private
warrants; approximately 2 million shares of Class A Common Stock
issuable upon the exchange of Class B Common Stock subject to earn
out or vesting requirements; and approximately 14 million shares of
Class A Common Stock issuable upon the exchange of Class B Common
Stock authorized for issuance pursuant to the Baker Hughes Joint
Development Agreement.
Conference Call
NET Power will host a conference call to discuss third quarter
2023 financial results beginning at 8:30 AM ET on Tuesday, November
14. 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 low-cost, clean and reliable power. The Company is
on a mission to deploy its utility-scale plants across the world by
partnering with local communities, power producers, energy
producers, technology providers 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 Registration
Statement on Form S-1 filed with the SEC on July 7, 2023, as
subsequently amended on September 15, 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/20231114684758/en/
Investor Relations Contact: investors@netpower.com
NET Power Media Contact: Sam Fabens
netpower@voxglobal.com
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