NET Power Inc. Q3 FY2024 earnings call

• Kicked off Phase 1 of equipment validation program with Baker Hughes at La Porte for oxy-fuel burner selection, with four-phase testing program through 2026. • Selected Air Liquide as air separation supplier for Project Permian, a significant milestone. • Outlined market study at Investor Day showing immense opportunity for 24/7 low-carbon energy in North American markets with up to 2,000 potential NET Power plants. • Progress on Project Permian including FEED with Zachry, ASU design for 2 x 50% configuration, and long lead material purchases. • Operations at La Porte with equipment validation campaigns, digital twin development, and site/permitting progress on first originated project in Northern MISO OP1.

No detailed financial performance for product segments provided in the transcript.

• Project Permian FEED with Zachry Group to conclude in Q4 2024, including cost estimate, schedule, and plant design. • Expect capital equipment and construction cost inflation for Project Permian, but offset by improving market price for clean power. • Zachry's engineering team to move into detailed design for Project Permian in 2025, including value engineering and incorporation of Air Liquide's ASU FEED.

• Inflation in capital equipment and construction costs posing a risk to Project Permian's budget. • Uncertainty around changes to the Inflation Reduction Act, particularly the 45Q tax credit, which could impact the financial viability of projects.

Q: About integrating multiple NET Power plants on a single site and capital equipment inflation.

A: Danny and Brian discussed cost savings from fleet deployments (shared control rooms, CO2 export compression, ASU) and noted seeing inflation in large engineered equipment like heat exchangers, turbomachinery, electrical equipment, with more to come through FEED.

Q: About oxygen storage opportunity and economic value.

A: Danny and Brian explained oxygen storage is inherent in the cycle, customizable by application, and has significant economic value as low-cost long-duration energy storage, providing peaking power to the grid while servicing co-located data centers.

Q: About 45Q tax credit and international opportunities.

A: Danny stated carbon capture is likely to be supported, with NET Power leveraging natural gas and fossil industry skills, and international focus on North America initially with interest in Australia, Middle East, etc.

Q: About partnerships with gas infrastructure players.

A: Danny explained gas infrastructure players have dual skills in gas transportation and CO2 transportation/sequestration, making them strategic partners for NET Power hubs, with potential for collaborative capital and infrastructure development.