Slide 1: Investor Presentation
Investor Presentation September 2024
Slide 2: Important Notice
Important Notice Cautionary Note Regarding Forward-Looking Statements and Projections. Certain statements in this presentation may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Priva
Slide 3: Presentation Agenda
Introduction & Executive Summary Technology Development Presentation Commercial Development Agenda Financial Updates Q&A / Closing Remarks power 3
Slide 4: Net Power Leadership
Net Power Leadership Danny Rice Brian Allen Akash Patel Chief Executive Officer President & Chief Operating Officer Chief Financial Officer Danny has served as Net Power’s CEO since Brian has served as Net Power’s President Akash has served as Net Power’s Chief June 2023 and brings over 20 years of
Slide 5: Baker Hughes' Net Power Program Leadership
Baker Hughes’ Net Power Program Leadership Alessandro Bresciani Frederic Greiner Senior Vice President, Climate Vice President Clean Power Solutions & CTS Technology Solutions at Baker Hughes Business Operations at Baker Hughes Mr. Bresciani brings over 22 years of global experience Mr. Greiner has
Slide 6: Supportive long term strategic shareholder group led by Oxy
Supportive long term strategic shareholder group led by Oxy Occidental provides guidance, oversight and support via board and deep bench of subject matter experts + Jeff Bennett Chairman of the Board President of U.S. Onshore Resources and Carbon Oxy Low Carbon Ventures (OLCV) Management, Commercial
Slide 7: Executive Summary
Executive Summary netpower 7
Slide 8: Net Power – Company Overview
Net Power – Company Overview NPWR has developed and proven its oxy-fueled power technology (the “Net Power Cycle”) to deliver clean, firm power Overview Current Ownership & Capitalization(1)(2) Steady Progress from Invention to Commercialization Net Power Cycle invented in 2010, commissioned 50MWt
Slide 9: Reliability and dispatchability in focus
Reliability and dispatchability in focus Regional Transmission Organizations (RTOs) forecast significant shortfalls from baseload retirements and increased renewable penetration MISO Capacity Forecast through 2042 (1) 75 + 60 GW ~830% 60 45 increase in PJM capacity 30 Installed Capacity auction clea
Slide 10: Clean power generation that checks all the boxes
Clean power generation that checks all the boxes Affordable Reliable Flexible Scalable Low Carbon Low Land Impact (<$100/MWh) (24/7, 365 days) (Load-Following) (>100 GW) (<100 g CO2e/kWh) (>1 GW / sq mile) Coal Natural Gas (CCGT) Natural Gas (CCGT + CCUS) ? ? Nuclear Solar / Wind + Battery Geotherma
Slide 11: Sustained load growth forecasted across targeted competitive power markets in North America
Sustained load growth forecasted across targeted competitive power markets in North America Installed capacity across Net Power’s North American targeted markets estimated to increase 3 – 4% per year from 2028 through 2040, driven by baseload retirements, electrification of everything and load growt
Slide 12: TAM / SAM / SOM: targeted competitive power markets in North America
TAM / SAM / SOM: targeted competitive power markets in North America Opportunity for Net Power to play significant role in North American energy mix by 2040 North America target markets: TAM / SAM / SOM (2028-2040) (1) TAM / SAM / SOM analysis conducted 2,500 - 3,200 NPWR Plants by BCG utilizing A
Slide 13: Three-Pillar Strategy to Create Shareholder Value
1 Develop and Prove the Technology at the Utility Scale Progress equipment development program with Baker Hughes Complete Front-End Engineering and Design (FEED) Secure equipment partnerships, supply and offtake agreements, and necessary capital Construct and operate with focus on clean, rel
Slide 14: Technology Development
Technology Development 14
Slide 15: Net Power's innovation harnesses CO2 for clean power
Net Power’s innovation harnesses CO2 for clean power Patented power cycle that avoids the creation of criteria pollutants and captures virtually all carbon emissions Utility-Scale Plant Stats (1) Net Power Cycle The CO2 mixture Net electrical Natural gas and expands and turns the turboexpander The C
Slide 16: Net Power's La Porte test facility validates and de-risks the technology
Net Power’s La Porte test facility validates and de-risks the technology Three separate testing campaigns completed between 2018-2021 provide technology validation • 50 MWth industrial scale (5-acre footprint) • Commissioned March 2018 with >1,500 hours of runtime • Initially designed to validate, d
Slide 17: Baker Hughes & Net Power
Baker Hughes & Net Power September 2024 Copyright 2024 Baker Hughes Company. All rights reserved. The information contained in this document is confidential and proprietary property of Baker Hughes and its affiliates. It is to be used only for the benefit of Baker Hughes and may not be distributed,
Slide 18: Baker Hughes Overview
BAKER HUGHES OVERVIEW 18 We take energy forward— making it safer, cleaner, and more efficient for people and the planet 120+ ~58,000 $25.5B Countries Employees Revenues in 2023 199 $658M AA Perfect HSE R&D spend in ESG rating by days in 2023 2023 MSCI Copyright 2024 Baker Hughes Company. All rights
Slide 19: Baker Hughes Capabilities
BAKER HUGHES CAPABILITIES 19 Leading Energy Technology Company SOLVE Providing equipment & Baker Hughes has a Customer and society diverse portfolio of challenges solutions to help solve technologies & services the world’s greatest across the energy SERVICE DEVELOP energy challenges SOLUTIONS landsc
Slide 20: Net Power: a strategic solution within Baker Hughes' Climate Technology Solutions portfolio
BAKER HUGHES AND NET POWER 20 20 Net Power: a strategic solution within Baker Hughes’ broader Climate Technology Solutions portfolio We are both an investor and technology partner INVESTMENT THESIS Natural gas is a transition and destination lower carbon fuel Net Power solution offers opportunity to
Slide 21: A proven track record in developing and industrializing new technologies
BAKER HUGHES – A LEADER IN ENERGY TECHNOLOGY DEVELOPMENT 21 A proven track record in developing and industrializing new technologies We are developing pioneering turboexpander technology for the Net Power solution For its combination of High Temperature (~1,000 °C), High Pressure (330 bar), and CO2
Slide 22: Continuous technology injection based on proven design and field experience
Continuous technology injection based on proven design and field experience Dissimilar welding Highlights New HT Materials Casings and coating Harsh environment • 450 MW shaft power in 6 x 4 mt / Instrumentation 20x 13 ft sCO2 compatibility • #8 expansion stages New materials tested • External beari
Slide 23: Investing in the Net Power program
Investing in the Net Power program Focused engineering, manufacturing and commercial resources in support of successful technology deployment Current Future Focused resources Global commercial & sales channel Focused engineering, sourcing and Leveraging a robust sales network / manufacturing resourc
Slide 24: A solution to enable decarbonization of Utility, Oil & Gas and Heavy Industry applications
BAKER HUGHES AND NET POWER 24 A solution to enable decarbonization of Utility, Oil & Gas and Heavy Industry applications In summary Continued demand for gas with low emissions Solution applicable across multiple industry verticals Securing customer interest across regions leveraging different policy
Slide 25: Net Power, a Baker Hughes partner
netpower a Baker Hughes S=
Slide 26: Baker Hughes validation testing begins in Q4 2024
Baker Hughes validation testing begins in Q4 2024 Validation Phases Expected Timing FUEL BURNER (Phase 1) Oxy-Fuel Burner Configurations LINERS Phase Q4 2024 – 1 Test multiple burners configurations in a Q1 2025 (Phase 2) dedicated test rig TRANSITION PIECE Single Demonstrator Combustor Can (Phase 2
Slide 27: Validation campaigns at La Porte de-risk utility-scale adoption
Validation campaigns at La Porte de-risk utility-scale adoption La Porte Phase 4 Utility-Scale Validation Campaign Deployments • Enabling technology: Baker Hughes’ • Baker Hughes Turboexpander technology: Turboexpander 12 can combustors, multiple burners 6 can combustors Same burner design as
Slide 28: Project Permian will demonstrate clean, reliable and safe operations at full utility scale
Project Permian will demonstrate clean, reliable and safe operations at full utility scale Project Permian Background • Utility-scale plant near Midland- Odessa, Texas with existing gas, power, and CO2 infrastructure • FEED work with Zachry expected to conclude in Q4 2024 • Captured CO2 will be tied
Slide 29: Preliminary targeted cost reductions and efficiency improvements from early deployments to later Gen1 plants
Preliminary targeted cost reductions and efficiency improvements from early deployments to later Gen1 plants Estimated 40-50% reduction in capital costs from early deployments to later Gen1 plants Supply Chain Development Learning by Doing Multi-unit/bulk purchasing; increased supplier Experience bu
Slide 30: Expected NPWR efficiency improvements vs. historical efficiency improvements of turbines and engines
Expected NPWR efficiency improvements vs. historical efficiency improvements of turbines and engines Key drivers of efficiency improvements • SN1 to Generic site: e.g., standard fuel gas, optimal ambient efficiency (1) temperatures, better plant cooling with higher quality water 50% • Early Gen1 imp
Slide 31: Scope of IP portfolio: patents & trade secrets
Scope of IP portfolio: patents & trade secrets What we have / key examples Direct-fired sCO2 Power Cycle Design Package Plant Process Control 46 456 Issued U.S. Total U.S. + Integration of the sCO2 Power Cycle for poly-generation Patents Foreign Patents Equipment design and operation in sCO2
Slide 32: Net Power is a 24/7 base platform of carbon-neutral systems
Net Power is a 24/7 base platform of carbon-neutral systems Innovation team focused on future technology integrations H2 production & H2 H2 use purification H2 Clean electricity NH3 / Urea Natural gas & other hydrocarbon gases production / use Clean electricity Electricity generation / use Air DAC H
Slide 33: Commercial Development
Commercial Development 33
Slide 34: Roadmap to commercial success
Roadmap to commercial success We believe origination project success requires symbiotic cooperation across a wide range of stakeholders • Identify potential plant sites in good power markets with proximity to (i) natural gas infrastructure, (ii) carbon sinks Local Site and (iii) electricity transmis
Slide 35: Origination strategy creates significant value upside
Origination strategy creates significant value upside Low-dollar origination work sets stage for fleet deployments and opens incremental value opportunities for NPWR Data Additional value opportunities Centers Class VI (Deep Origination opens incremental Grid Saline value opportunities Aquifer) ORIG
Slide 36: NPWR's standardized plant design provides multiple benefits
NPWR’s standardized plant design provides multiple benefits NPWR’s compact plant is built upon the principles of standardization, enabling scale, operational and environmental advantages, and repowering of aging fossil plant sites Estimated land footprint per GW of around-the-clock capacity (1) Net
Slide 37: Origination sets the stage for valuable future deployments
Origination sets the stage for valuable future deployments Midcontinent (MISO) Alberta, Canada (AESO) Load growth, carbon storage projects across states, datacenter demand Supportive carbon capture policy incentives and carbon emissions NPWR (OP1): Site + permitting phase pricing, low-cost gas + pro
Slide 38: Plant Economics / Financial Updates
Plant Economics / Financial Updates 38
Slide 39: Capex comparison: NPWR vs. unabated CCGT
Capex comparison: NPWR vs. unabated CCGT • Net Power plants generate two cash flow streams: Net Power's Carbon-Adjusted Power, $/kw i. Power sales ii. CO2 sales / credits Carbon-Adjusted Power Capex: 45Q for 12 Years ($/kw) • In the U.S., 45Q provides ~$430mm PV10 benefit $3,091 assuming a 12-year c
Slide 40: Around-the-clock Levelized Cost of Energy
Around-the-clock Levelized Cost of Energy NPWR offers 24/7 firm, clean power without sacrificing affordability Around-the-clock LCOE ($/MWh)(1) • Small land footprint • Targeting 97%+ carbon capture; no NOx / SOx • Flexible power that can ramp quickly / load Commercial Considerations follow • Signif
Slide 41: Illustrative NPWR Single Plant Economics
Illustrative NPWR Single Plant Economics Example of how to create a simplified financial model of a single utility-scale Net Power plant Inputs Model LHV Efficiency Power price required to Capex ($bn) achieve a 10% IRR for the established range of efficiency and capex inputs Notes: Model does not re
Slide 42: Capital Allocation and Project Permian Funding Update
Capital Allocation and Project Permian Funding Update Anticipated Capital Allocation through 2027 Project Permian Funding Update • $200mm earmarked for Project Permian; ~$200-225mm began releasing long-leads Corporate G&A, ~$200mm Origination, ~$609mm Project • FEED conclusion Q4 provides detailed o
Slide 43: Q&A
Q&A power 43