Key points for investors:
- Project Permian Phase 1: NET Power is advancing an 80 MW net, grid-connected commercial deployment sited near Midland, Texas, targeting FID in H2 2026 and commercial operation in early 2029. The design pairs two ~35 MW turbines with Entropy's post-combustion capture (PCC) to achieve >90% CO2 capture, with 100% CO2 offtake expected to Oxy for EOR. The site can potentially scale to ~800 MW (10 units).
- Commercial offtake is the gating item for project financing: the company has engaged a strategic adviser to run the offtake process. They are pursuing a fixed-price long-term PPA for the first phase; behind-the-meter/colocated options are included in future phases.
- Entropy relationship and technology: NET Power expects to finalize a joint development/license agreement with Entropy in Q2 2026, securing exclusive rights to Entropy's amine-based solvent PCC for U.S. power through 2032 and potential up to 49% equity participation. Entropy's Glacier projects (Phase 1 operating; Phase 2 coming online in Q2 2026) materially de-risk the PCC integration.
- Procurement and execution: A methodical long-lead procurement schedule is underway. Siemens RPS gas turbine packages (~$77M) are contracted; switchyard/gen-tie targeted by June; HRSGs/steam turbine/ACC targeted for July; PCC equipment targeted August–September. The team has defined a product breakdown structure to lower future non-recurring engineering costs.
- Financial position and targets: Q1 cash was ~$319M with no debt; quarterly G&A burn ~ $8–9M. Total installed cost (TIC) target for Phase 1 remains $475M–$575M. NET Power equity contribution target is $125M–$175M, with remaining capital to come from debt and Entropy/equity participation. A target delivered price of ~$100/MWh (or better) in West Texas, enabled by low-cost gas and EOR sequestration, is cited as support for bankability.
- Environmental profile and market positioning: Independently validated lifecycle emissions estimated ~210 gCO2e/kWh (vs ~440 g for unabated combined cycle and >900 g for coal). Management emphasizes speed, scale and community acceptance as the decisive buyer criteria and notes that market acceptance of EOR as the sequestration pathway is an important commercial risk/variable.
- Risks and near-term milestones: The primary near-term risks are securing committed offtake (the commercial process), closing the Entropy JDA (expected Q2), executing long-lead equipment releases in step with offtake/financing, and obtaining final permits (air permit expected H2 2026). Market acceptance of EOR-backed captured CO2 remains a potential commercial hurdle.
Overall takeaway: NET Power believes it has materially de-risked the technology and engineering, is well funded to reach FID contingent on committed offtake and financing, and is positioning Project Permian as a cost-competitive, scalable clean firm power solution in West Texas with a pathway to sub-$100/MWh through EOR-led sequestration.
Sign In
Buy NPWR
