North Carolina-based energy company NET Power has listed in New York by closing its merger with special purpose acquisition company (SPAC) Rice Acquisition Corp II (RAC II).
The combined group, operating as NET Power, commenced trading on the New York Stock Exchange on 9 June 2023 under the ‘NPWR’ ticker symbol.
The energy firm is now valued at $1.5bn, with a market capitalisation of more than $2bn.
The deal secured gross proceeds of $675m, which include $135m from Rice’s trust account and $540m in private investment in public equity (PIPE) capital from strategic and financial investors.
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Occidental also offered $10m in interim funding to support the company’s operations through the completion of the transaction.
NET Power will utilise the proceeds to fund its corporate operations and grow its backlog of power plant projects. Delivery of the projects is expected to begin in 2026.
Existing investors in Net Power, which include Constellation, 8 Rivers, Occidental and Baker Hughes, have rolled 100% of their stake into the new business.
It was agreed that former Rice Energy CEO and RAC II director Danny Rice will assume the role of CEO in the combined company.
Rice stated: “This deal sets NET Power on a path to accelerate the build-out 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.”