Net Power, a project development company, has entered into two agreements to increase its power generation capacity at Project Permian, the company’s first natural gas power plant in Texas, US.
The company, based in North Carolina, has secured rights to acquire 123MW of new gas-fired power generation equipment, subject to certain conditions.
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Upon closing of the agreement, the acquisition would increase Net Power’s potential power generation to nearly 200MW for the first phase of Project Permian.
As part of the equipment rights arrangement, Net Power has provided a $20m deposit under an exclusivity agreement covering a third party’s engineering, procurement and construction role and related power generation assets.
The purchase is contingent on customary third-party consents, final documentation and other closing requirements.
The company expects the transaction to close in the third quarter of 2026. Payment will be made partly at closing, with the balance paid as equipment manufacturing, delivery and installation milestones are achieved.
Separately, Net Power has agreed to a cost reimbursement framework with a prospective end customer.
The agreement provides for reimbursement of certain specified, approved third-party costs related to the acquisition and project development, up to a defined cap. It does not require either party to enter into a future energy services contract or commit to purchasing power.
According to Net Power, the framework could help facilitate equipment financing for the project.
Net Power CEO Danny Rice said: “Entering into these agreements is a practical next step in our power-first strategy that we outlined in our second-quarter earnings call.
“When taken together, these agreements provide us the opportunity to secure and deliver more power sooner with appropriate financial protections.
“This becomes a template we hope to replicate to secure additional generation capacity for early deployment at our first project.”
Net Power previously secured contracts for two modular gas turbine generator units, each with an estimated gross output of around 68MW, designated for use at Project Permian.
The company has indicated that the site has the potential to support substantial expansion in later development phases.
