The transaction is expected to raise at least $670 million in gross proceeds, including a minimum of approximately $130 million of cash-in-trust. Upon completion of the merger, NET Power will be valued at approximately $1.5 billion.

Gross proceeds from the transaction will be used to accelerate deployments of NET Power’s novel natural gas-fired power plant technology, which the company says captures over 97% of CO2 generated.

The NET Power capture system utilizes the Allam-Fetvedt Cycle, combusting natural gas with oxygen, as opposed to air, and uses supercritical carbon dioxide as a working fluid to drive a turbine instead of steam. This theoretically eliminates all air emissions, including traditional pollutants and CO2 and inherently produces pipeline-quality CO2 that can be sequestered underground.

In November 2022 the company announced a plan to develop and build its first utility-scale natural gas-fired plant with carbon capture and sequestration (CCS). NET Power has a “backlog of utility-scale power plant projects,” with initial commercialization expected in 2026.

Danny Rice, current director of RAC II will take over the combined company, to be named NET Power Inc., and “lead it through commercialization and beyond.”

NET Power announced a partnership with Baker Hughes as it works toward a commercial deployment of its near zero-emission power systems.

NET Power’s process burns natural gas to fuel a supercritical CO₂  cycle that generates electricity. The technology is unique in that it reuses most of the carbon dioxide produced and captures the rest, meaning it emits virtually nothing into the atmosphere. The North Carolina-based company has said its plants should cost no more to build and operate than a traditional natural gas plant.

In 2018 we reported NET Power successfully achieved first fire of its demonstration plant and test facility in La Porte, Texas. At that time, the company had targeted the global deployment of 300 MW capacity commercial-scale plants beginning as early as 2021.

Global goals for net-zero carbon emissions and the growing need for CO₂ that can be sequestered or utilized in industrial processes is creating right market conditions for the adoption of clean and reliable energy generation. NET Power said it would license its technology to global customers seeking to decarbonize the energy and industrial sectors.

Baker Hughes said it would supply its supercritical CO₂ turboexpanders and other pumping and compression technology for the NET Power plants. The energy tech company will also bring its system integration and process knowledge experience to help accelerate market deployment.

The partnership already includes McDermott International; Constellation; Oxy Low Carbon Ventures, a subsidiary of Occidental; and 8 Rivers Capital.