NET Power Inc

NET Power Inc (NYSE: NPWR) is an energy technology company focused on developing its proprietary NET Power Cycle, which converts natural gas into electricity. The technology is engineered to inherently capture carbon dioxide (CO₂) during the power generation process while producing minimal air pollutants, including sulfur oxides (SOx), nitrogen oxides (NOx), and particulate emissions.

Key Growth Aspects

• Strategic Pivot Unlocks Near-Term Market Opportunity: Net Power’s decision to expand its strategy toward gas turbines paired with post-combustion carbon capture (PCC) represents a pragmatic response to accelerating demand for firm, dispatchable power with credible decarbonization pathways. By broadening beyond its proprietary oxy-combustion platform, the Company positions itself to address immediate customer needs while maintaining alignment with energy transition objectives. This shift enhances commercial relevance in a market increasingly constrained by power shortages and grid reliability concerns.
• Partnership with Entropy Accelerates Commercial Readiness: The exclusive U.S. partnership with Entropy Inc. strengthens Net Power’s execution capability by integrating a proven, high–technology readiness level PCC solution into its project portfolio. Entropy’s proprietary solvent technology, already operating at commercial scale, enables faster deployment timelines, turbine optionality, and reduced execution risk. This collaboration effectively transforms Net Power into a technology-agnostic clean power developer, expanding addressable market scope and improving speed-to-market.
• Visible Project Pipeline with Defined Timelines: Net Power has established a tangible development pipeline anchored by its Permian Basin and Northern MISO clean firm power hubs. The Permian project, targeting up to 1GW of capacity with Phase I expected to reach final investment decision in 1H 2026 and commercial operations in 2028, provides a clear pathway to first revenues. Similarly, progress in Northern MISO, including site control and interconnection requests, underpins medium-term growth visibility through 2029–2030.
• Strong Liquidity Supports Strategic Flexibility: The Company ended the quarter with approximately USD 424 million in cash, cash equivalents, and investments, providing substantial financial runway. This robust liquidity position allows Net Power to fund early-stage project development, advance partnerships, and selectively allocate capital between near-term PCC projects and longer-term oxy-combustion efforts without immediate reliance on external financing. The balance sheet strength enhances resilience amid evolving market and policy conditions.

Growth Challenges

• Impairment Highlights Commercial Challenges of Oxy-Combustion: Net Power recorded a non-cash impairment related to its oxy-combustion technology following a reassessment of market adoption and cost competitiveness. Despite ongoing engineering improvements, the technology has not yet achieved economic viability relative to alternatives in the current market environment. This development underscores slower-than-expected acceptance and reduces near-term confidence in the commercial scalability of the Company’s core proprietary solution.
• Execution Risk Remains Elevated for First-of-Kind Projects: While project timelines are increasingly defined, both the Permian and Northern MISO hubs remain subject to execution risks inherent in large-scale infrastructure development. Key milestones—including final investment decisions, construction, and commissioning—depend on successful permitting, interconnection approvals, and counterparties finalizing offtake and sequestration agreements. Any delays could materially impact projected commercialization timelines and capital efficiency.
• Dependence on External Partners and Regulatory Progress: The Company’s PCC-focused strategy increases reliance on third-party partners for carbon capture technology, CO₂ sequestration, and regulatory approvals such as Class VI permits. Progress in Northern MISO, in particular, is contingent on the timely advancement of sequestration permitting by external partners. This dependency introduces variables outside Net Power’s direct control, potentially affecting project certainty and scalability.
• Limited Operating Revenues and Ongoing Cash Burn: Despite strategic progress, Net Power remains in a pre-commercial phase with no meaningful recurring operating revenues. Continued investment in project development, testing, and organizational capabilities implies sustained cash outflows over the near to medium term. While current liquidity is strong, prolonged delays in achieving commercial operations could increase future funding requirements and pressure long-term capital allocation decisions.

Key Risks

• Project Execution and Timing Risk: Delays in achieving final investment decisions, construction milestones, or commercial operations for the Permian and Northern MISO projects could materially impact timelines and capital efficiency.
• Technology and Commercial Adoption Risk: Slower-than-expected market acceptance of the Company’s oxy-combustion technology, as evidenced by recent impairments, may limit long-term differentiation and returns.
• Regulatory and Permitting Risk: Dependence on timely approvals for interconnections and Class VI CO₂ sequestration permits introduces uncertainty that could defer or constrain project development.

Technical Observation (on the daily chart):

Net Power’s share price remains in a clear downtrend, trading near USD 2.34 and well below its 20-day (USD 2.68) and 50-day (USD 3.26) moving averages, which continue to slope downward. Momentum is weak, with the RSI around 25 indicating deeply oversold conditions, suggesting selling pressure has been intense, though a short-term technical bounce cannot be ruled out. However, the absence of strong volume support and the failure to reclaim key resistance levels imply that the broader bias remains bearish, with downside risks persisting unless the stock can move back above its short-term averages.

Net Power presents a mixed profile, combining improving near-term commercial visibility with ongoing execution and technology-related risks. The Company’s strategic shift toward gas turbine projects integrated with post-combustion carbon capture—supported by its partnership with Entropy and a defined development pipeline in the Permian Basin and Northern MISO—strengthens near-term relevance amid growing demand for reliable, lower-carbon power. A solid cash balance provides operational flexibility and reduces immediate financing pressure. Offsetting these positives, the impairment of its oxy-combustion technology points to slower market adoption, while the Company remains pre-revenue and exposed to permitting delays, partner reliance, and project execution challenges. Overall, Net Power retains long-term optionality in low-carbon gas power, but near-term outcomes remain sensitive to regulatory progress and timely project delivery.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given NET Power Inc (NYSE: NPWR) at the closing market price of USD 2.34 as of Dec 17,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is December 17,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.