NET Power Achieves Below $100/MWh LCOE for Project Permian Using Integrated Gas Turbine Approach

NET Power Inc. (NPWR) has outlined a levelized cost of electricity (LCOE) below $100/MWh for Project Permian, citing a new integrated gas turbine approach. CEO Daniel Joseph Rice highlighted unprecedented demand in the energy market due to AI and data center growth, with rising grid load and capacity prices. NPWR's new approach aims to meet this demand while reducing costs.

Net Power Inc. (NPWR) has reported significant progress in its second-quarter financial and operational results for 2025, with a notable highlight being the development of an integrated gas turbine approach for Project Permian. The company aims to achieve a levelized cost of electricity (LCOE) below $100 per megawatt hour (MWh) through this innovative strategy.

According to the company’s CEO, Danny Rice, the integration of simple cycle gas turbines into the project design has unlocked significant operational synergies by directly integrating the gas turbines with the Net Power Cycle. This configuration allows for the delivery of power sooner and at a lower cost per unit of power. The approach aligns with the current market demand for reliable power, driven by the growth in AI and data centers, and the increasing grid load and capacity prices.

The integration of gas turbines is part of a broader strategy to optimize Net Power’s deployment amidst unprecedented demand growth. The company has identified further cost reductions for its SN1 project, with a projected total installed cost of $1.6-1.9 billion while preserving product performance. Additionally, recent tax legislation, including expanded 45Q credits for Class II sequestration and reinstated bonus depreciation, has improved project economics, yielding an approximate $20/MWh LCOE improvement at Project Permian.

Net Power ended the second quarter with a robust financial position, holding approximately $475 million in cash, cash equivalents, and investments. The company continues to make progress on its La Porte test facility, where site repairs were completed, and technology validation work resumed, achieving over 150 hours of testing in July. Phase 1 testing is expected to be completed in 2025, with Phase 2 testing set to commence this year and be completed in early 2026.

The company’s MISO project remains on track for early deployment, and the 300MW interconnect application is subject to the progress timeline of the MISO DPP-2023 cycle. Net Power’s sequestration providers are also progressing their Class VI sequestration applications through the EPA’s Class VI permit process.

Net Power will host a conference call on Tuesday, August 12, at 8:30 AM ET to share its second-quarter 2025 results and related matters. The live audio webcast will be available at the company’s investor relations website, and an archived webcast will be available following the call.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/NPWR-N/pressreleases/34056364/net-power-reports-second-quarter-2025-results-and-provides-business-update/
[2] https://www.marketscreener.com/news/net-power-reports-second-quarter-2025-results-and-provides-business-update-ce7c5ed3d889f12c