Financial Data and Key Metrics Changes - The company ended Q3 2024 with approximately 8 million, including a 22 million, with 13 million for La Porte modifications and upgrades [42] Business Line Data and Key Metrics Changes - The company is progressing through a four-phase testing program at La Porte with Baker Hughes, which is critical for technology development at utility scale [7][11] - The selection of Air Liquide as the air separation supplier for Project Permian marks a significant milestone, with the design involving two adjacent air separation units delivering approximately 4,000 tons of oxygen per day [8][34] Market Data and Key Metrics Changes - The company sees a serviceable opportunity for up to 2,000 NET Power plants in targeted North American markets, focusing on areas with sufficient CO2 storage and infrastructure [10][11] - The company believes there will be a shortage of clean baseload power globally, positioning itself to capture demand with Project Permian expected to come online in 2027/2028 [12][13] Company Strategy and Development Direction - The company is focused on leveraging clean, cheap, and abundant natural gas to provide low-cost, quick-to-market clean power solutions [11] - The strategy includes developing a shadow backlog of projects to ensure visibility into future deployments once the first utility-scale project is operational [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercialization of their technology, emphasizing the importance of carbon capture as a bipartisan solution for decarbonization [73][76] - The company is actively pursuing partnerships with gas infrastructure players to enhance the value proposition of their NET Power hubs [88][93] Other Important Information - The company is developing a digital twin model of its demonstration plant to apply AI and machine learning for performance improvements [27] - The company is preparing for the EPC phase and construction kick-off for Project Permian in the second half of 2025 [37] Q&A Session Summary Question: Integration of multiple NET Power plants on a single site - Management discussed the economic benefits of deploying multiple plants together, highlighting significant construction savings and operational efficiencies [46][51] Question: Capital equipment inflation - Management noted that inflation is being observed in large engineered equipment, with ongoing negotiations to mitigate costs [53][55] Question: Oxygen storage opportunity - Management explained that oxygen storage is customizable based on application needs, with potential for monetization of both baseload and peaking power [58][62] Question: Concerns about 45Q and the Inflation Reduction Act - Management expressed confidence that carbon capture will remain a bipartisan priority, emphasizing its role in decarbonization [73][78] Question: International opportunities - Management indicated that while North America is the primary focus, there is growing interest in markets like Australia and the Middle East [80][82] Question: Partnerships with gas infrastructure players - Management confirmed that partnerships with gas infrastructure companies are strategic, as they can provide both gas supply and CO2 transportation solutions [88][93]
netpower(NPWR) - 2024 Q3 - Earnings Call Transcript