Net Power Inc. has reset its plans for Project Permian (SN1) following the completion of the front-end engineering design (FFED) for its first utility-scale project in West Texas. The company said in a media release that the cost estimate was significantly higher than expected, prompting the company to pause long-lead releases for the project.

Net Power said it had commenced post-FEED optimization and value engineering exercises to deliver a financeable commercial product launch. It has launched a modular multi-unit feasibility study to drive cost reductions and take advantage of the market’s demand for larger generation capacity.

“2024 was a year of significant achievement amidst challenging market conditions for commercializing new technologies”, Danny Rice, Chief Executive Officer of Net Power, said. “Due, in large part, to today’s inflationary environment and the first-of-a-kind nature of this facility, the initial cost estimates reveal areas where we can meaningfully and efficiently reduce costs to achieve successful final investment decision (FID).

“We believe our shift in focus to remove or reduce these costs from SN1 as well as from our standard plant design will better position Net Power to achieve the lowest costing clean, firm power available in the market.

“With over $500 million in liquidity, we believe we’re in a strong position to advance the technology and optimize our plant design while simultaneously attracting the right strategic partners to help commercialize and fully unlock this technology’s potential”.

Net Power estimates Project Permian's total installed cost to be $1.7 billion to $2.0 billion, including unique project costs. While benefiting from existing CO2 pipeline infrastructure, the project faces site-specific challenges affecting costs, the company said. If successful, the project is expected to start no earlier than 2029.

The company said it plans a scalable configuration of two to four power train modules per plant to reduce costs through economies of scale, more pre-fabrication, less labor, and lower transportation expenses. Net Power said it is identifying coastal locations for 2030-2033 deployments, aiming for sites that can support up to one gigawatt and potentially co-locate with large data centers and industrial power users.

Furthermore, the company said that validation efforts at its La Porte, Texas, demonstration facility are progressing. In the fourth quarter of 2024, Net Power started Phase 1 testing with Baker Hughes, focusing on selecting the oxy-fuel burner configuration. The facility is nearing target temperatures and pressures and has already surpassed conditions from the 2021 campaign, it said. To date, the facility has operated for over 140 hours, including a 30-hour continuous run. Net Power said it expects to complete Phase 1 and Phase 2 testing by 2025.

As of the end of 2024, Net Power said it had $533 million in cash and investments, down from $580 million last quarter, primarily due to operating cash outflows and capital expenditures for the La Porte upgrades and the SN1 development.

In 2025, Net Power will focus on advancing technology development, reducing utility-scale plant costs, and creating a modular design to maximize the value of its proprietary Net Power Cycle in a challenging market, it said.

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