-
Ongoing work at the La Porte demonstration facility site in preparation for upcoming equipment validation campaigns with Baker Hughes
-
Advanced front-end engineering and design (FEED) work for the Permian Project, the company’s first utility-scale project in West Texas
-
Submitted interconnection request with the Midcontinent Independent System Operator (MISO) for OP1, the first project originating from the Company
DURHAM, North Carolina, May 13, 2024–(BUSINESS WIRE)–NET Power Inc. (NYSE: NPWR) (“NET Power” or the “Company”) today reported first quarter 2024 results.
Danny Rice, CEO of NET Power, commented: “The urgent need for clean, reliable and affordable energy requires innovative, game-changing solutions like NET Power. We believe our technology can play a critical role in decarbonizing baseload power generation without sacrificing accessibility.
As I’ve highlighted in the past, we measure our progress toward commercialization through three strategic pillars: developing and proving utility-scale technology, building our project portfolio, and strengthening our supply chain to prepare for the mode of production. The NET Power team continues to work diligently against these pillars.”
Business update
Validation of Baker Hughes equipment at La Porte demonstration facility – The Company continues modifications to its La Porte facility to prepare for upcoming equipment validation campaigns with Baker Hughes. The process will follow four phases: (i) selection of oxyfuel burner configuration, (ii) single demonstrator combustor can validation, (iii) single utility scale combustor can validation, and (iv) full turboexpander validation of the demonstrator. The demonstrator turboexpander features a downsized flow path with the same design philosophy as the utility-scale turboexpander. The first phase is scheduled to begin in the fourth quarter of 2024 and subsequent phases are expected to continue through 2026. These equipment validation test campaigns at La Porte are intended to de-risk the utility-scale turboexpander that will be deployed at the Permian Project and future projects.
Permian Project – On NET Power’s first Texas-based project, located near Midland-Odessa, FEED continues with licensed EPC partner Zachry Group. The FEED is expected to be completed in the fourth quarter of 2024 and will form the basis for NET Power’s standardized utility-scale plant design. Long-term component orders have begun and are expected to continue throughout 2024.
During the quarter, engineering work began with the Air Separation Unit (ASU) supplier selected by the Company for the Permian Project, and a land lease agreement was signed with Occidental Petroleum. These achievements position NET Power to remain on schedule for the Permian Project’s development, with a first fire between the second half of 2027 and the first half of 2028.
Origination – In April 2024, NET Power submitted a request for MISO interconnection for OP1, the first project originated by the Company. NET Power’s origination strategy is designed to accelerate large-scale, cost-effective deployments of NET Power plants in competitive energy markets in North America.
Financial Updates
During the first quarter, cash flow used in operations was approximately $3 million and cash flow used in investing activities was approximately $106 million, which includes approximately $96 million in purchases of available securities for sale and $10 million in capital expenditures, primarily for La Porte. and Permian Project. The Company ended the first quarter of 2024 with approximately $625 million in cash and investments and no debt, compared to approximately $637 million in cash and investments at the end of the fourth quarter of 2023.
Conference call
NET Power will host a conference call to discuss Q1 2024 financial results beginning at 8:30 a.m. ET on Monday, May 13. To access the live audio webcast of the call, visit the NET Power investor relations website at ir.netpower. with. To participate by phone, dial 877-407-8014 (domestic) or +1 201-689-8053 (international).
An archived webcast will be available following the conference call.
About NETPower
NET Power (NYSE: NPWR) is a clean energy technology company developing its unique NET Power Cycle, which transforms natural gas into clean, reliable and affordable energy. The Company’s mission is to implement its large-scale plants across the world, establishing partnerships with power producers, energy producers, technology providers, local communities and other interested parties. NET Power was founded in 2010 and has offices in Durham, North Carolina (headquarters) 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, anticipated demand for NET Power’s technology and the markets in which NET Power operates, the timing of plant deliveries and NET Power’s business strategies, capital, potential growth opportunities and future performance expectations (financial or otherwise). Forward-looking statements are based on the Company’s current expectations, estimates, projections, goals, opinions and/or beliefs, and such statements involve known and unknown risks, uncertainties and other factors. Actual results may differ materially from those discussed in the 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 Annual Report on Form 10-K for the year ended December 31 . 2023, its subsequent annual reports on Form 10-K and quarterly reports on Form 10-Q, and its other filings made from time to time with the SEC, which are available on 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 place undue reliance on forward-looking statements, and NET Power undertakes 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 guarantee that it will meet your expectations.
View the original version on businesswire.com: https://www.businesswire.com/news/home/20240513285632/en/
Contacts
Investor Relations Contact:
investors@netpower.com
NET Power Media Contact:
Sam Fabens
netpower@voxglobal.com
