NET Power Inc.

What they do

Net Power was historically focused on developing a novel oxy-combustion power generation system designed to produce electricity from natural gas while capturing atmospheric emissions. In the fourth quarter of 2025 and continuing through 2026, it repositioned around commercial deployment of natural gas power generation equipment designed to accommodate post-combustion carbon capture technology in later phases. It currently has no plans to resume development of the Oxy-Combustion Cycle, suspended development activities under the BHES JDA, and recognized a full impairment of related developed technology assets. Its near-term commercial strategy prioritizes rapid deployment of natural gas power generation to serve large-load customers, initially without carbon capture.

Revenue drivers

• Electricity sales (planned) — Under the current strategy, projects are expected to generate revenue principally from the sale of electricity; no commercial plant has been completed and no material revenue has been generated.
• Captured CO2 and environmental attributes (planned, later phases) — If carbon capture is deployed at Project Permian Phase I or later phases, captured CO2 is intended to be sold or delivered for sequestration in connection with enhanced oil recovery in the Permian Basin or other geologic storage; no definitive agreement has been signed.
• Historical revenue — Reported annual revenue was $580,000 in 2022, $250,000 in 2024, and $0 in 2025, and quarterly revenue was $0 in each quarter of 2025.

Recent performance

Second quarter 2026 revenue was $0, consistent with the four quarters of 2025. Net loss was $578.6 million for the year ended December 31, 2025, compared with $49.2 million for 2024, and diluted EPS was negative $7.34 in 2025 versus negative $0.67 in 2024. Operating cash flow was negative $120.8 million in 2025, compared with negative $31.6 million in 2024. As of June 30, 2026, the company reported total assets of $338.3 million, total liabilities of $25.5 million, shareholder equity of $83.5 million, and cash and equivalents of $117.9 million; the second quarter 2026 release cites $310 million in cash, cash equivalents, and investments.

Strategy

Management is recalibrating the commercial strategy toward fast-to-deploy, unabated natural gas power generation, citing customer priorities of speed-to-power, reliability, and scale driven by AI and hyperscale data center load growth. Net Power has contracted two modular gas turbine generator sets with nominal gross power of approximately 68 megawatts for use at Project Permian and is evaluating acquiring additional gas power units. Carbon capture is retained as an option to be layered in as customer needs, economics, and financing evolve. The company is in discussions with Entropy Inc. about potential commercial arrangements for PCC technology in later project phases after the prior letter of intent expired; no definitive agreement has been executed. Development activities under the BHES JDA have been suspended and the workforce adjusted in affected areas.

Risks

• No material revenue or commercial plant — Net Power has not generated material revenue and does not expect meaningful revenue unless and until it completes its first commercial plant deployment, which may not occur on its anticipated timetable or at all.
• Continuing losses and cash burn — The company reported a net loss of $578.6 million for 2025 and negative operating cash flow of $120.8 million, and expects operating expenses to significantly outpace revenue in the short term.
• Uncommitted project financing — As of the August 13, 2026 release, no project-level financing, customer deposits, or partner capital for Project Permian had been committed, and the 12-month liquidity conclusion excludes additional pre-FID equipment obligations the company is evaluating.
• Dependence on carbon capture incentives and policy — The economics of carbon sequestration depend on the Section 45Q credit ($85 per metric ton after the IRA and OBBBA amendments), and changes to such incentives or to greenhouse gas regulations could adversely affect demand and project economics.

Outlook

Management states that existing liquidity is sufficient to fund obligations for the next 12 months following the 10-Q filing, assuming no additional pre-FID equipment obligations are entered into, and warns that no project-level financing, customer deposits, or partner capital for Project Permian has been committed. The company continues commercial discussions with prospective power offtakers directly and with a financial advisor for Project Permian and other sites. It expects operating expenses to decrease over the next several years relative to prior years as a result of suspending La Porte testing and shifting focus, but still expects expenses to significantly outpace revenue in the short term.