Net Power Inc. · NYSE:NPWR
Net Power — Investor Presentation (September 2024)
43 slides from Net Power's investor presentation, Sep 10, 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Projections
2 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 Private Securities L
Slide 3: Presentation Agenda
3power Presentation Agenda Introduction & Executive Summary Technology Development Commercial Development Financial Updates Q&A / Closing Remarks
Slide 4: Net Power Leadership
4 Net Power Leadership Danny has served as Net Power’s CEO since June 2023 and brings over 20 years of energy industry experience across traditional energy production and transportation, energy technologies and energy transition Danny Rice Chief Executive Officer Brian Allen President & Chief Operat
Slide 5: Baker Hughes' Net Power Program Leadership
5 Baker Hughes’ Net Power Program Leadership Frederic Greiner Vice President Clean Power Solutions & CTS Business Operations at Baker Hughes Alessandro Bresciani Senior Vice President, Climate Technology Solutions at Baker Hughes Mr. Bresciani brings over 22 years of global experience in the energy
Slide 6: Board and Occidental strategic shareholder support
6 President of U.S. Onshore Resources and Carbon Management, Commercial Development of Occidental Jeff Bennett Chairman of the Board President of Oxy Energy Services, LLC Frederick Forthuber Director Deputy General Counsel, Commercial Development and Operations of Occidental Brad Pollack Director, N
Slide 7: Executive Summary
Executive Summary netpower 7
Slide 8: Net Power – Company Overview
8 Net Power – Company Overview Steady Progress from Invention to Commercialization Net Power Cycle invented in 2010, commissioned 50MWth test facility in 2018 (La Porte); conducted testing campaigns 2018- 2021 to validate and prove the cycle Q1 2022: signed agreement with Baker Hughes (“BH”) to
Slide 9: Reliability and dispatchability in focus
9 0 15 30 45 60 75 -15 -30 -45 Reliability and dispatchability in focus Regional Transmission Organizations (RTOs) forecast significant shortfalls from baseload retirements and increased renewable penetration ~830% increase in PJM capacity auction clearing price (3) Tighter electricity supply and lo
Slide 10: Clean power generation that checks all the boxes
10 Clean power generation that checks all the boxes Affordable (<$100/MWh) Reliable (24/7, 365 days) Flexible (Load-Following) Scalable (>100 GW) Low Carbon (<100 g CO2e/kWh) Low Land Impact (>1 GW / sq mile) Coal Natural Gas (CCGT) Natural Gas (CCGT + CCUS) Nuclear Solar / Wind + Battery Geothermal
Slide 11: Sustained load growth in targeted North American markets
11 2027 installed capacity Retirements - coal Retirements - gas Retirements - other, incl. wind, solar, nuclear Net new or replacement generation capacity 2040 installed capacity Source: Boston Consulting Group, NPWR management estimates 1. Target markets include PJM, WECC, ERCOT, SPP, MISO, CAISO,
Slide 12: TAM / SAM / SOM analysis
12 Total addressable market (TAM) Serviceable addressable market (SAM) Serviceable obtainable market (SOM) All net new or replacement generation capacity expected Regions in which sufficient CO2 storage infrastructure is/will be available for a NPWR plant to operate ~20%-100% of SAM; if procuring 24
Slide 13: Develop and Prove the Technology at the Utility Scale
13 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, reliab
Slide 14: Technology Development
Technology Development netpower «
Slide 15: Net Power's innovation harnesses CO2 for clean power
15 Net Power’s innovation harnesses CO2 for clean power LOW PRESSURE CO2 AIR SEPARATION COMPRESSOR/PUMP H E A T E X C H A N G E R WATER SEPARATOR WATERWATERWATER ELECTRICITY TURBOEXPANDERCOMBUSTORNATURAL GAS IN OXYGEN IN AIR IN CLEAN INDUSTRIAL GASES NITROGEN ARGON OXYGEN CO2 OUT High Pressure to Pi
Slide 16: La Porte test facility validates and de-risks the technology
16 • 50 MWth industrial scale (5-acre footprint) • Commissioned March 2018 with >1,500 hours of runtime • Initially designed to validate, de-risk Net Power Cycle • Currently upgrading to support Baker Hughes technology demonstration in parallel with utility- scale program Facility Overview • sCO2 tu
Slide 17: Baker Hughes & Net Power
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, transmitted, reproduced, altered, or use
Slide 18: Baker Hughes Overview
Copyright 2024 Baker Hughes Company. All rights reserved. Note all data as of December 31, 2023 B A K E R H U G H E S O V E R V I E W We take energy forward— making it safer, cleaner, and more efficient for people and the planet ~58,000 Employees 199 Perfect HSE days in 2023 120+ Countries $658M R&D
Slide 19: Baker Hughes Capabilities
Copyright 2024 Baker Hughes Company. All rights reserved. 13 B A K E R H U G H E S C A P A B I L I T I E S Providing equipment & solutions to help solve the world’s greatest energy challenges Leading Energy Technology Company Baker Hughes has a diverse portfolio of technologies & services across the
Slide 20: Baker Hughes and Net Power: investor and technology partner
20B A K E R H U G H E S A N D N E T P O W E R We are both an investor and technology partner Copyright 2024 Baker Hughes Company. All rights reserved. Net Power: a strategic solution within Baker Hughes’ broader Climate Technology Solutions portfolio INVESTMENT THESIS Net Power solution offers oppor
Slide 21: A proven track record in developing new technologies
A proven track record in developing and industrializing new technologies 21B A K E R H U G H E S – A L E A D E R I N E N E R G Y T E C H N O L O G Y D E V E L O P M E N T We are developing pioneering turboexpander technology for the Net Power solution For its combination of High Temperature (~1,000
Slide 22: Turboexpander and combustion technology highlights
Highlights • 450 MW shaft power in 6 x 4 mt / 20x 13 ft • #8 expansion stages • External bearing pedestals • Single design for : 3000/3600 rpm • Load transmission on exhaust side • Integral load flange • Mass ~135 tons (w/o baseplate, manifolds and valves) Copyright 2024 Baker Hughes Company. All ri
Slide 23: Investing in the Net Power program
Investing in the Net Power program Focused engineering, sourcing and manufacturing resources supporting NPWR TEX program Focused resources Standardization and modularization capabilities to sustain market demand after validation Serial production capabilities Leveraging Baker Hughes manufacturing an
Slide 24: In summary
24B A K E R H U G H E S A N D N E T P O W E R In summary A solution to enable decarbonization of Utility, Oil & Gas and Heavy Industry applications Solution applicable across multiple industry verticals Continued demand for gas with low emissions A winning partnership Securing customer interest acro
Slide 25: Net Power a Baker Hughes
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Slide 26: Validation phases and expected timing
26 Expected TimingValidation Phases Single Utility-Scale Combustor Can Test full utility-scale cluster, liner, and transition piece Full Demonstrator Turboexpander & Cycle Operate turboexpander at full cycle conditions; validate architecture, materials, and full plant operability Single Demonstrator
Slide 27: Validation campaigns at La Porte de-risk utility-scale adoption
27 Validation campaigns at La Porte de-risk utility-scale adoption La Porte Phase 4 Validation Campaign • Enabling technology: Baker Hughes’ Turboexpander 6 can combustors Single burner per each can Reduced-size flow path with same design philosophy as utility-scale • Same cycle full operating
Slide 28: Project Permian anticipated timeline
28 2024: Release initial long-lead equipment orders 2H 2027 / 1H 2028: Initial power generation 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
Slide 29: Targeted cost reductions from early deployments to later Gen1 plants
29 Preliminary targeted cost reductions and efficiency improvements from early deployments to later Gen1 plants Multi-unit/bulk purchasing; increased supplier competition; increased manufacturing capacity Supply Chain Development Move labor from expensive field construction to factories, optimize lo
Slide 30: Expected Net Power efficiency improvements
30 Early Gen1 Target Gen1 Target ~45% 50% 1. Based on the Company's work to date, Net Power expects early projects to target a net efficiency of approximately 45% (LHV). Incorporating the lessons learned from early plants' operations, Net Power targets delivery of later Gen1 plants with net efficien
Slide 31: Intellectual property portfolio
31 1. High-Efficiency Power Generation Cycle 2. Integrations of the Power Generation Cycle 3. Control of a Power Plant 4. Miscellaneous 1 2 3 4 What we have / key examples Direct-fired sCO2 Power Cycle Design Package Plant Process Control Integration of the sCO2 Power Cycle for poly-generation
Slide 32: Net Power as a 24/7 base platform of carbon-neutral systems
32 Air H2 use NH3 / Urea production / use Data centers Natural gas & other hydrocarbon gases H2 production & purification DAC Heat Clean electricity Clean electricity CO2 CO2 storage / use Electricity generation / use N2 Ar H2 H2 Clean electricity Net Power is a 24/7 base platform of carbon-neutral
Slide 33: Commercial Development
Commercial Development netpower x
Slide 34: Roadmap to commercial success
34 Roadmap to commercial success We believe origination project success requires symbiotic cooperation across a wide range of stakeholders Site Identification & Preliminary Diligence • Identify potential plant sites in good power markets with proximity to (i) natural gas infrastructure, (ii) carbon
Slide 35: Origination opens incremental value opportunities
35 ORIGINATION ($5-10 million per hub) Origination opens incremental value opportunities Additional value opportunities Origination strategy creates significant value upside Low-dollar origination work sets stage for fleet deployments and opens incremental value opportunities for NPWR HUB Data Cente
Slide 36: Standardized plant design and land footprint
36 1. Source: Thundersaid Energy Net Power plant configurations • ~250 MWe • 0.8 MMTPY CO2 • 15 Acres • ~500 MWe • 1.6 MMTPY CO2 • <30 Acres • 1,000 MWe • 3.2 MMTPY CO2 • <60 Acres 1 Plant 2-Pack 4-Pack WIND + STORAGE S O LA R + S TO R A G E Estimated land footprint per GW of around-the-clock capaci
Slide 37: Target regions and project status
371. Source: NPWR internal estimates Alberta, Canada (AESO) Supportive carbon capture policy incentives and carbon emissions pricing, low-cost gas + proven CO2 storage NPWR: Project feasibility phase Wyoming Supportive carbon management approaches, potential for offtake NPWR: Site identification pha
Slide 38: Plant Economics / Financial Updates
38 Plant Economics / Financial Updates
Slide 39: Total Capex Per 250MW NPWR Plant
39 Total Capex Per 250MW NPWR Plant $1.2B $1.1B $1.0B $0.9B $0.8B $0.7B $0.6B $3,091 $2,691 $2,291 $1,891 $1,491 $1,091 $691 Carbon-Adjusted Power Capex: 45Q for 12 Years ($/kw) Note: Does not reflect Project Permian economics. 1. 45Q assumes 2.5% inflation; $430mm PV10 assumes 12-year 45Q tax credi
Slide 40: Levelized cost comparison versus alternatives
40 • Significant regulatory, technical, and economic challenges for meaningful commercialization before 2035 • Small land footprint • Targeting 97%+ carbon capture; no NOx / SOx • Flexible power that can ramp quickly / load follow 1. Represents midpoint of Lazard’s June 2024 LCOE analysis for each r
Slide 41: Illustrative NPWR Single Plant Economics
41 Notes: Model does not reflect Project Permian plant capex or operational statistics. Total opex derived from midpoint of Lazard CCGT assumptions and does not reflect NPWR. Operational assumptions can vary materially based on site and region-specific factors. Total capex includes NPWR upfront lice
Slide 42: Capital allocation and Project Permian funding update
421. Does not include any interest income or revenue. Corporate G&A, Origination, & Other capital subject to change based on Project Permian, La Porte and Baker Hughes JDA program allocation • $200mm earmarked for Project Permian; began releasing long-leads • FEED conclusion Q4 provides detailed ope
Slide 43: Q&A
43power Q&A