NET Power Announces its First Utility-Scale Clean Energy Power Plant Integrated with CO2 Sequestration

NET Power-led consortium to accelerate commercialization of its technology by building the first utility scale gas-fired power plant with carbon capture near Odessa, Texas

ODESSA, Texas, Nov. 7, 2022 /PRNewswire/ -- Today, NET Power, LLC announced its plan to develop and build the world's first utility-scale natural gas-fired power plant with near-zero atmospheric emissions. The project fully integrates power production with transportation and underground sequestration of carbon dioxide. The new plant will be built near Occidental's Permian Basin operations. The plant is expected to be online in 2026.

NET Power's transformational technology produces power while inherently capturing nearly all emissions with its patented oxy-fuel combustion and supercritical CO₂ cycle. These plants produce clean, on-demand power at low cost and address critical issues of air quality and land use, virtually eliminating air emissions including nitrogen oxides (NO_x), sulfur oxides (SO_x), and carbon dioxide (CO₂).

This announcement comes on the heels of recent NET Power momentum. NET Power proved its groundbreaking technology at its La Porte demonstration site, culminating with synchronization to the Texas electric grid in fall 2021. NET Power announced a partnership with energy technology company Baker Hughes in February 2022 to develop and market a suite of integrated equipment and technologies, including supercritical CO₂ turboexpanders. This utility-scale serial number one project serves as the commercial launch pad for NET Power's core process technology, accelerating other projects already in development and providing the pathway for global deployment of this innovative decarbonization platform.

"Having demonstrated the capability of the technology at La Porte, and having partnered with Baker Hughes to commercialize the NET Power system, we are excited to accelerate the deployment of this game changing technology," said Ron DeGregorio, CEO of NET Power. "This plant allows for the quick ramp up in NET Power's global deployments, providing a clear and meaningful pathway to near emission-free reliable power."

NET Power selected the project located at an Occidental hosted site near Odessa, Texas from a slate of early adopter project candidates. The project targets approximately 300 megawatts (MW) of carbon-free power and will transport captured CO₂ to a permanent underground sequestration location through Occidental's existing Permian CO₂ handling infrastructure and operations.

NET Power will engage its strategic shareholders to support the project with resources:

• Occidental for CO₂ transportation and sequestration and power off-take;
• Constellation Energy Generation, LLC for the company's expertise in plant operations and power off-take;
• Baker Hughes for key integrated process equipment and technologies; and
• 8 Rivers Capital for project development support.

Richard Jackson, President, U.S. Onshore Resources and Carbon Management, Operations, Occidental said, "We are excited to support NET Power's first utility-scale project. This plant will accelerate plans to reduce carbon emissions to help achieve net zero goals. The project allows both companies to develop best practices that use NET Power's technology to provide near emissions-free power for our Permian operations and future Direct Air Capture sites."

NET Power's project builds on years of internal development of a standardized and modularized design concept. Pre-Front End Engineering and Design (Pre-FEED) studies have been completed with full FEED work to commence in the first quarter of 2023.

Chris Barkey, CTO - Industrial & Energy Technology at Baker Hughes, remarks "We are excited to support the development of the NET Power system. Our technology is robust, and the program is progressing well to deliver a world-class 300MW class suite of equipment enabling utility-scale operation in 2026, and a rapid ramp-up in commercial deployments thereafter."

The project will be financed through a combination of NET Power's current capitalization program, investments from existing shareholders, and new project financing. Additionally, NET Power is pursuing government support available at the federal, state, and local level, with special focus on grant and loan opportunities arising from the Bipartisan Infrastructure Law. The long-term opportunity for NET Power projects is further improved with the Inflation Reduction Act and its enhancements to the 45Q carbon capture tax credit available to capturing facilities. To qualify for these credits, electric generation units must be designed to capture at least 75 percent of carbon dioxide emissions, a number which NET Power facilities easily exceed.

NET Power is a clean energy technology company whose mission is to globally deploy affordable and reliable zero-emissions energy by delivering on the "Energy Trifecta": Reliable, Clean, and Affordable. The Company invents, develops and licenses technology that provides reliable on-demand natural gas power with life cycle emissions that are 90 percent below today's combined cycle natural gas systems and in line with renewables coupled with batteries. The technology also delivers a levelized cost of energy that is below both combined cycle gas turbines with carbon capture and renewables coupled with batteries. Founded in 2010 and headquartered in Durham, North Carolina, NET Power has received strategic investments from key industry partners including 8 Rivers, Constellation, Occidental and Baker Hughes.

SOURCE NET Power