Net Power Locks In 123 MW More Gas Capacity
A $20 million deposit and a cost-reimbursement agreement give Net Power Inc. rights to a third party's gas-turbine equipment position, layering onto an already-contracted 68 MW as the developer prioritizes fast, unabated power over its own carbon-capture technology. Analysis, not advice.
Net Power Inc. paid a $20 million deposit for exclusivity on roughly 123 MW of third-party gas-turbine equipment, targeting a Q3-2026 close. Combined with about 68 MW already under contract, this pushes Project Permian's first phase toward nearly 200 MW — still short of a final investment decision, and with no power-purchase commitment attached. Analysis, not advice.
The Gulf Barrel Desk · 4 min read- Net Power Inc. paid a $20 million deposit for exclusivity on a third party's roughly 123 MW gas-turbine equipment and EPC position — not a completed equipment purchase.
- Combined with about 68 MW already under contract, the deal would lift Project Permian's Phase 1 potential capacity to nearly 200 MW once it closes, targeted for Q3 2026.
- The agreement carries no obligation on either side to sign a power-purchase or energy-services agreement; reported cost-reimbursement terms with a prospective customer are a separate, non-binding arrangement.
- Net Power no longer expects a final investment decision on Project Permian in 2026 and CEO Danny Rice says the company is prioritizing speed-to-power and scale over its patented carbon-capture cycle for the project's first phase.
- As of Q2 2026, Net Power reported $117.93 million in cash and equivalents against $312.91 million in current assets, per its own earnings disclosure. This is analysis, not advice.
Net Power Inc. has agreed to pay a $20 million deposit for exclusivity on roughly 123 MW of third-party gas-turbine equipment and engineering rights, the Houston-based developer disclosed this week. Combined with about 68 MW already under contract, the move pushes potential capacity at Project Permian's first phase toward nearly 200 MW — still short of a final investment decision. The underlying agreement commits neither side to a power-purchase contract. Analysis, not advice.
What Net Power actually signed
Net Power's reported agreement is a deposit-and-exclusivity arrangement, not a completed equipment sale. The company paid $20 million to secure rights to a third party's engineering, procurement and construction position and associated power-generation equipment rights for a roughly 123 MW gas-fired project, according to the company's own disclosure. The deposit is credited toward the total purchase price if the transaction closes, which Net Power targets for the third quarter of 2026, subject to customary third-party consents and definitive documentation — conditions that are not guaranteed to clear.
Why the total lands near 200 MW, not 123
The 123 MW figure is additive, not standalone. Net Power has separately contracted two modular gas turbine generator sets totaling roughly 68 MW for Project Permian, the company's first "powered land" development in the Permian Basin of West Texas. Stacking the newly announced 123 MW onto that existing 68 MW commitment is what the company says pushes potential capacity for the project's first phase to nearly 200 MW — a figure describing contracted and near-contracted equipment rights, not installed or operating capacity.
The deal doesn't commit anyone to buy power
Net Power also disclosed a cost-reimbursement agreement with a prospective end customer covering certain procurement costs tied to the 123 MW equipment. Reported terms state the framework does not obligate either party to sign an energy services agreement or commit to a power purchase, and may instead serve as collateral for equipment financing. That distinction matters: a reimbursement-and-exclusivity structure secures Net Power's position in a tight gas-turbine supply queue without yet locking in the revenue contract a project needs to reach final investment decision.
Carbon capture waits; gas goes first
The equipment build-out arrives alongside a strategic pivot the company disclosed on August 17, 2026: Net Power no longer expects to reach a final investment decision on Project Permian in 2026 and has shelved near-term plans to deploy its patented Allam-Fetvedt Cycle carbon-capture technology at the site. CEO Danny Rice said the company's commercial strategy is now built around what data-center customers are "actually prioritizing: speed-to-power, reliability and scale," reserving capture technology for later phases pending customer demand and financing.
What to watch next
Three items will confirm whether this converts into an operating project: whether the 123 MW deal actually closes in the third quarter of 2026 as targeted; whether Net Power signs a binding power-purchase or energy-services agreement with the prospective customer named only generically in its disclosure; and whether a final investment decision follows. Net Power reported $117.93 million in cash and equivalents against $312.91 million in current assets as of its second-quarter 2026 results — the balance sheet against which further capital commitments will be measured. Analysis, not advice.
- Does Net Power now own the 123 MW of equipment?
- No. Reported terms describe a deposit-and-exclusivity agreement — Net Power Inc. holds rights to a third party's EPC position and paid a $20 million deposit, credited toward the purchase price if the deal closes, targeted for the third quarter of 2026.
- Will Project Permian use Net Power's own carbon-capture technology?
- Not initially. Net Power has said it is deferring its Allam-Fetvedt Cycle carbon-capture system for Project Permian's first phase in favor of conventional gas-fired generation, reserving capture technology for later phases pending customer demand and financing, per the company's August 17, 2026 disclosure.
- How big could Project Permian eventually get?
- Net Power has cited a long-term target of roughly one gigawatt for the site in phased buildout, though no final investment decision has been made and the company has not set a start-up timeline. This is analysis of public disclosures, not advice.
- Net Power Executes Contract for Additional 123 MW Capacity — Rigzone
- Net Power Signs Agreements for Additional Power Generation to Advance its Power-First Strategy — Offshore Source (Business Wire)
- Net Power Says It Is Focusing on Gas to Ride Data Center Demand — Rigzone