NET Power and Rice Acquisition Corp. II (RONI) have successfully finalised their business combination, forming a new entity known as NET Power Inc. This partnership brings together NET Power’s innovative technology, which enables the production of clean, affordable, and dependable energy, with RONI’s expertise as a publicly traded special purpose acquisition company.

As of 9 June 2023, NET Power’s Class A common stock and warrants to purchase Class A common stock will be listed on the New York Stock Exchange under the ticker symbols ‘NPWR’ and ‘NPWR WS’, respectively.

Following the completion of the business combination, NET Power holds an initial enterprise value of approximately $1.5bn, accompanied by a market capitalisation exceeding $2bn.

This transaction has resulted in substantial proceeds that are anticipated to furnish NET Power with ample capital for its corporate operations and the expansion of its backlog of utility-scale power plant projects. The company’s objective is to commence plant deliveries in 2026, utilising the funds to drive future growth and innovation in the energy sector.

NET Power has successfully received gross proceeds exceeding $675m through the Business Combination. These proceeds include over $135m from RONI’s trust account and approximately $540m from PIPE (Private Investment in Public Equity) capital contributed by strategic and financial investors. Occidental, as part of its commitment, provided $10m in interim financing to ensure smooth operations until the completion of the Business Combination.

Furthermore, existing strategic investors in NET Power, including Occidental, Baker Hughes, Constellation, and 8 Rivers (a subsidiary of SK Group), have opted to roll over 100% of their equity into the combined company. This demonstrates their continued confidence and commitment to the success of NET Power.

Since the initial announcement of the proposed Business Combination in December, NET Power has achieved significant milestones. First, they successfully increased the PIPE (Private Investment in Public Equity) capital from approximately $225m to approximately $540m, indicating strong investor interest and support.

Additionally, NET Power has commenced the Front End Engineering and Design (FEED) phase for its inaugural standardised utility-scale project, which is situated near Occidental’s Permian Basin operations. This marks an important step towards the realisation of their innovative energy solutions.

Furthermore, NET Power has revealed plans for a joint venture with SK Group, a collaboration aimed at originating and developing utility-scale NET Power plants across Asia. This strategic partnership demonstrates NET Power’s commitment to expanding its reach and impact in the Asian market.

These developments highlight NET Power’s progress in advancing its technology, expanding its project portfolio, and forging key partnerships to drive the deployment of clean and efficient energy solutions.

NET Power CEO Danny Rice said: “This deal sets NET Power on a path to accelerate the buildout and commercialisation of our technology and bring the world the trifecta of clean, affordable, and reliable energy.

“Rapid deployment of decarbonised baseload power around the world is critical to addressing climate change and NET Power’s technology offers a path forward. I’m excited to join the team and lead the global deployment of this critical technology.”

Occidental president and CEO Vicki Hollub said: “We believe NET Power has a transformative technology that supports our net-zero ambitions through its ability to provide near emissions-free power to our Permian Basin operations and future Direct Air Capture sites.

“Globally deploying affordable, reliable and clean power is an important step to accelerate carbon reductions and further climate goals, which we think is best attained with NET Power.”

Baker Hughes chairman and CEO Lorenzo Simonelli said: “With demand for natural gas expected to grow over the coming decades, NET Power’s near-zero emissions power plant design exemplifies the vital role of climate technology in enabling the transition to lower emissions. We are pleased to collaborate with NET Power as its partner in the global deployment of this technology in the years to come.”