NET Power (NPWR) Surges 10.95% on Cost Cuts, Tax Incentives Boost LCOE Outlook

Shares of NET Power (NPWR) surged to a new high since October 2025 on Monday, climbing 10.95% for the fourth consecutive day, with a 24.58% gain over the past four sessions. The stock reached an intraday high of 14.50% during the session, driven by optimism around its integrated power solutions and cost-reduction initiatives.

The company’s strategic integration of cost-effective gas turbine capacity into its projects aims to achieve a levelized cost of energy (LCOE) below $100/MWh, a 33% improvement from prior estimates. By combining simple cycle gas turbines with its proprietary Net Power Cycle, the firm accelerates deployment timelines while embedding pathways for future decarbonization, aligning with market demand for reliable, low-carbon power generation.

Recent tax incentives, including expanded 45Q credits for carbon sequestration, have bolstered project economics. These credits are projected to reduce LCOE by $20/MWh at Project Permian, enhancing the competitiveness of Net Power’s carbon capture strategies in emissions-conscious markets. The company also reported a projected total installed cost of $1.6–1.9 billion for its SN1 project, preserving performance while lowering expenses.

Operational advancements at its La Porte test facility, including over 150 hours of testing in July 2025, validate the scalability of the Net Power Cycle. Regulatory progress on its MISO project, including a 300MW interconnect application, underscores alignment with grid integration goals. A robust balance sheet, with $475 million in cash and equivalents, further supports ongoing R&D and project development, reducing reliance on external financing.

Strategic leadership emphasizes the company’s focus on decarbonization pathways, positioning it as a leader in clean energy transitions. However, insider transactions, such as the sale of 31,394 shares by General Counsel James Mahon, may raise questions about investor sentiment. While such sales could reflect personal liquidity needs, continued activity might signal caution.

Despite these positives, risks persist, including regulatory delays and technical challenges in scaling proprietary technology. The company’s success hinges on securing partnerships and financing for large-scale projects. Forward-looking metrics, such as projected LCOE improvements, remain subject to market and geopolitical uncertainties.