Company Website: https://netpower.com
HOUSTON -- (Business Wire)

Net Power Inc. (NYSE: NPWR) (“Net Power”) today announced two agreements advancing its power-first strategy prioritizing speed, reliability, and scale for large-load customers.

Net Power has secured the rights to acquire 123 megawatts (MW) of new power generation equipment which, upon closing of the agreement, would bring Net Power’s total potential power generation capacity to nearly 200 MW for the first phase of Project Permian, its inaugural powered land project in Texas.

Separately, Net Power and a prospective end customer have entered into a cost reimbursement agreement that provides for, among other things, the reimbursement of certain costs incurred by Net Power in connection with the procurement of the 123 MW of new equipment.

“Entering into these agreements is a practical next step in our power-first strategy that we outlined in our second-quarter earnings call,” said Danny Rice, Chief Executive Officer of Net Power. “When taken together, these agreements provide us the opportunity to secure and deliver more power sooner with appropriate financial protections. This becomes a template we hope to replicate to secure additional generation capacity for early deployment at our first project.”

Transaction Highlights:

• Exclusive path to approximately 123 MW of additional capacity: The deposit and exclusivity agreement relates to a third party’s engineering, procurement and construction position and associated power generation equipment rights for an approximately 123 MW gas-fired power generation project. In connection with this agreement, Net Power has made a $20 million deposit, which will be credited at closing towards the total purchase price. The agreement remains subject to customary third-party consents, definitive documentation, and other closing conditions. Closing is expected to occur in the third quarter, at which point a portion of the total cost will be due and paid from cash on hand; the remainder will be due and paid in accordance with equipment manufacturing, delivery and installation milestones.
• Cost-reimbursement framework with a prospective customer: Under the cost reimbursement agreement, the prospective customer may reimburse specified, approved, and documented third-party costs incurred in connection with the proposed acquisition and related project development, subject to the agreement’s terms, procedures, and aggregate cap. The framework does not obligate either party to enter into an energy services agreement and does not constitute a commitment by any party to purchase power. This cost reimbursement agreement may serve as collateral to support attractive equipment financing.

About Net Power

Net Power Inc. (“Net Power” or the “Company”) is an energy technology and project development company focused on the development of natural gas power generation projects to meet growing demand for reliable power. The Company’s near-term development activities are focused on delivering natural gas power generation, with equipment designed to accommodate carbon capture in later phases.

Cautionary Note Regarding Forward-Looking Statements

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,” “potential,” “projects,” “targets,” or other similar expressions may identify such forward-looking statements. Forward-looking statements may relate to the proposed acquisition of contractual and equipment positions; the funding, treatment and potential return or forfeiture of deposits; satisfaction of third-party consent and definitive-documentation conditions; the availability, timing, transfer, financing and deployment of power generation equipment; the amount of generation capacity that may become available to the Company; the Company’s cost-reimbursement agreement with a prospective customer; negotiation or execution of an energy services agreement; development and financing of the Company’s power generation projects; anticipated demand for the Company’s products and services; the timing and configuration of project phases; grid interconnection; and the Company’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, the possibility that the proposed acquisition is not completed on the anticipated terms or at all; that third-party consent or other closing conditions are not satisfied; that funded deposits are retained by the seller; that the Company assumes or incurs costs and obligations exceeding current estimates; that equipment is delayed, unavailable, unsuitable for an intended project or not deployed; that the prospective customer does not enter into an energy services agreement or commit to purchase power; that reimbursement is unavailable, delayed, disputed, subject to exclusions or limited by the applicable cap; risks relating to the uncertainty of the projected financial information with respect to the Company and risks related to the Company’s ability to meet its projections; the capital-intensive nature of the Company’s business model, which will likely require Net Power to raise additional capital in the future; the Company’s ability to negotiate and enter into binding power offtake agreements on acceptable terms and on a timeline that supports a final investment decision for Project Permian; risks related to grid interconnection, including the timing and outcome of the large-load interconnection processes of the Electric Reliability Council of Texas and any related verification, audit, or other regulatory or legislative processes; the availability, cost, and delivery timing of gas turbines, reciprocating engines, and related long-lead equipment; the impact of tariffs, trade barriers, export controls, and sanctions on equipment costs and supply timelines; the development of competing energy technologies, including battery storage, nuclear, and other generation resources; changes in, or the elimination of, governmental incentives and tax credits supporting carbon capture, including the credit available under Section 45Q of the Internal Revenue Code, and restrictions on the value, transferability, and monetization of such credits, and the availability of arrangements for the sale, transportation, sequestration, or other disposition of captured CO₂; the possibility that the Company’s projects are developed with natural gas generation in advance of, or without, carbon capture; risks associated with developing power generation projects for co-located load; risks relating to the Company’s access to capital, potential dilution to existing stockholders, and the continued listing of its securities on the New York Stock Exchange; the availability of project-level financing, equipment financing, additional equity or equity-linked capital, partner capital, or other financing sources on acceptable terms or at all; the timing and amount of any equipment-financing proceeds, including the possibility that such proceeds may not be sufficient to refinance amounts previously funded by Net Power for the deposits; uncertainty regarding the current and future market for natural gas-generated power, with or without carbon capture; the Company’s ability to license third-party technology; the ability of the Company to effectively secure licenses for third-party PCC technology and to integrate such technology in its projects; barriers the Company may face in its attempts to deploy and commercialize its technology; the Company’s ability to adequately control or accurately predict the costs associated with its projects; barriers that the Company may face in its attempts to deploy projects; the complexity of the machinery the Company relies on for its operations and development; potential changes and/or delays in site selection and construction that result from regulatory, logistical, and financing challenges; the Company’s ability to establish and maintain supply relationships; risks related to strategic investors and partners, including potential conflicts of interests between the Company and such investors and partners; the Company’s ability to successfully commercialize its operations; the availability and cost of technological components and raw materials for its projects; the impact of potential delays in discovering manufacturing and construction issues; the ability of Net Power’s commercial plants to efficiently provide net power output; the impact of public perception of fossil fuel-derived energy on the Company’s business; any political or other disruptions in gas producing nations; the Company’s ability to protect its intellectual property and the intellectual property it licenses; the possibility that the Company commits substantial capital to power generation equipment before binding power offtake, site-control or financing arrangements are in place, and may not recover some or all of that capital; the Company’s ability to obtain the additional land and development rights required for the contemplated co-located configuration and broader build-out at Project Permian; the Company’s ability to attract, retain, and motivate qualified personnel, and risks associated with workforce reductions; the Company’s ability to realize value from the Oxy-Combustion Cycle intellectual property and its interests at the La Porte Demonstration Facility, and the timing and cost of decommissioning that facility; risks relating to data privacy and cybersecurity, including the potential for cyberattacks or security incidents that could disrupt our or our service providers’ operations; current and potential litigation that has been and may be instituted against the Company; and other risks and uncertainties described under the headings “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Net Power’s Annual Report on Form 10-K for the year ended December 31, 2025, its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 filed with the SEC on August 13, 2026, its other 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260824770577/en/

Contacts:

Investor Relations Contact:
investors@netpower.com

Media Contact:
netpower.media@netpower.com

Source: Net Power Inc.