Net Power Q2 2025 Results Show Strong Financial Position, Operational Progress, and Technology Integration Advancements
Net Power Inc. (NYSE: NPWR) (“Net Power” or the “Company”), a developer of innovative zero-emissions natural gas power technology, has released its financial and operational results for the second quarter ended June 30, 2025. The results highlight substantial progress in technology development, cost optimization, and strategic positioning for near-term project deployment.
Quarterly Highlights
The second quarter of 2025 was defined by several significant milestones that strengthen Net Power’s pathway to commercial deployment. These include advancements in integrated plant design, cost reductions, policy-driven economic benefits, and sustained capital reserves.
1. Integrated Product Configuration Development
- Net Power successfully completed a techno-economic analysis aimed at integrating cost-effective gas turbine capacity (in the range of 50MW to 200MW) into its projects.
- Findings indicate substantial operational, economic, and commercial synergies from this configuration.
- This integrated design will be applied to Project Permian, with a target levelized cost of energy (LCOE) below $100 per megawatt-hour (MWh).
- The approach allows for:
- Earlier power delivery by initially installing simple-cycle gas turbines.
- Lower cost per unit of electricity due to efficiency gains from heat integration with the Net Power Cycle.
- Enhanced flexibility to meet current demand while embedding pathways for future decarbonization.
2. SN1 Cost Reduction Initiatives
- Additional cost optimization efforts for the SN1 project are projected to lower total installed costs to $1.6 billion–$1.9 billion without compromising performance.
- These reductions are expected to improve both project feasibility and return on investment.
3. Policy-Driven Economic Improvements
- Recent U.S. tax legislation under the OBBBA framework has created favorable financial conditions, including:
- Expanded 45Q credits for Class II sequestration.
- Reinstated bonus depreciation provisions.
- These changes are expected to improve Project Permian’s economics by approximately $20/MWh in LCOE.
- The policy updates significantly enhance the project’s competitiveness against other low-carbon and traditional generation options.
4. Financial Position
- Net Power ended the quarter with a robust liquidity position:
- $475 million in cash, cash equivalents, and investments.
- This capital reserve strengthens the Company’s ability to fund ongoing technology validation, project development, and early-stage construction activities.
CEO Commentary
Danny Rice, President and Chief Executive Officer of Net Power, emphasized the importance of the Company’s integrated technology strategy:
“Over the past several months, we have conducted an in-depth engineering, operational, and commercial analysis to optimize Net Power’s deployment amid unprecedented demand growth for reliable power generation. Today, we are excited to share the initial positive results, including a strategy that integrates simple cycle gas turbines into the project design, unlocking significant operational synergies through heat integration with our Net Power Cycle.
This configuration allows us to deliver power sooner and at a lower cost per unit of power by installing gas turbines first and then integrating that equipment directly with the Net Power Cycle. We believe this solution perfectly aligns with the market’s need for reliable power today while embedding credible pathways to decarbonize over time — a prioritization we are seeing directly from customers.
We plan to demonstrate this integrated product at Project Permian, where LCOE has improved by over 33%, driven by integrated product synergies, ongoing cost reduction efforts, and recent enhancements to 45Q. The world needs the reliable, clean electricity that Net Power can provide, which can catalyze a decarbonized power system. The integrated product gives us the best pathway to get our first projects built and deliver on the technology’s promise.”
Operational and Technology Updates
La Porte Test Facility Progress
- The Company completed site repairs and resumed technology validation work at its La Porte, Texas test facility.
- Achievements include:
- Over 150 hours of testing completed in July 2025.
- Progress toward completing Phase 1 testing within 2025.
- Planned initiation of Phase 2 testing later this year, with expected completion in early 2026.
- Phases 3 and 4 preparations are underway, with completion targeted for 2026 and 2027, respectively.
The La Porte facility remains a critical step for validating Net Power’s zero-emissions natural gas power cycle before commercial-scale deployment.
Project Permian
- Will serve as the first integrated demonstration of the new gas turbine plus Net Power Cycle configuration.
- Expected benefits:
- LCOE improvements exceeding 33% compared to previous design iterations.
- Accelerated delivery timelines for early electricity generation.
- Long-term decarbonization compatibility through carbon capture and sequestration (CCS).
MISO Project
- Development of the Midcontinent Independent System Operator (MISO) project remains on track for early deployment.
- Project specifics:
- 300MW interconnect application is progressing within the MISO DPP-2023 cycle.
- Sequestration providers are advancing Class VI sequestration permit applications through the U.S. Environmental Protection Agency (EPA) process.
- The integrated gas turbine + Net Power Cycle configuration is also under evaluation for this site, potentially mirroring Project Permian’s benefits.
Strategic Significance of the Integrated Product
The move toward integrating simple-cycle gas turbines into Net Power’s projects represents a major strategic shift. The benefits include:
- Accelerated Market Entry
- By initially installing gas turbines, Net Power can deliver power to the grid more quickly, generating early revenue while completing full integration with the Net Power Cycle.
- Cost Competitiveness
- Achieving an LCOE under $100/MWh positions Net Power competitively against other low-carbon and even some fossil-fuel-based generation options.
- Scalable Decarbonization
- The system is designed to capture and store CO₂ emissions, allowing projects to move toward near-zero emissions over time without stranded asset risk.
- Alignment with Policy Incentives
- Enhanced 45Q tax credits and bonus depreciation provisions directly improve project returns, making Net Power’s offerings more attractive to utilities, industrial customers, and investors.
