Net Power has used its second-quarter 2026 update to outline a significant shift in near-term priorities. The energy technology company is focusing on rapidly deployable, unabated natural-gas power for data centres and other large electricity users, while retaining carbon capture as a later-stage option.
Key takeaways
- Net Power is prioritising speed-to-power, reliability and scalable natural-gas generation.
- Project Permian has two contracted gas turbine generator sets with combined nominal gross capacity of about 68 megawatts.
- The company held $310 million in cash, cash equivalents and investments at 30 June.
- Its previous letter of intent with Entropy has expired, although discussions on future carbon-capture cooperation continue.
- Project Permian has not yet secured project financing, customer deposits or partner capital.
The strategic reset follows several months of customer engagement. Chief executive Danny Rice said the company’s discussions had clarified what prospective power customers are prepared to purchase in the current market, particularly as artificial intelligence and hyperscale data centres drive demand for new electricity supplies.
Strategy shifts towards immediate power demand
Net Power intends to direct near-term capital and execution resources towards natural-gas generation that can be deployed without carbon capture. The company believes this approach better matches customers’ immediate requirements for dependable electricity and shorter development timelines.
Carbon capture remains part of the longer-term plan. Net Power says future projects can be designed or developed to accommodate carbon-capture equipment when customer demand, project economics and financing conditions make deployment more attractive.
Project Permian remains a central focus
The company is continuing discussions with potential power buyers for Project Permian and other sites, both directly and with assistance from a financial adviser. It has already contracted two modular gas turbine generator sets for Project Permian and is considering buying additional gas-power equipment.
However, the project remains subject to important commercial and financial milestones. No project-level financing, customer deposits or partner funding had been committed by the date of the announcement. Net Power also cautioned that additional equipment commitments under consideration could affect its liquidity outlook.
Entropy arrangement is being reconsidered
Net Power and Entropy, a post-combustion carbon-capture technology company, are discussing possible commercial arrangements after their earlier letter of intent expired. Any cooperation could support the addition of Entropy’s technology during later phases of Net Power projects, if market conditions and funding support that development.
The change reflects the company’s broader decision to preserve carbon capture as an option rather than make it a requirement for near-term generation projects.
Liquidity and outlook
Net Power reported $310 million in cash, cash equivalents and investments at the end of the quarter. Based on its current obligations and operating plans, the company said it expects existing liquidity to cover the following 12 months after filing its quarterly report, provided it does not enter into additional pre-final-investment-decision equipment commitments.
The company’s outlook remains dependent on securing power-purchase agreements, obtaining financing, navigating grid interconnection processes and managing equipment costs and delivery schedules. It also faces competition from batteries, nuclear power and other generation technologies, alongside uncertainty around carbon-capture incentives and infrastructure.
Net Power planned to discuss the results and business update during an investor conference call on 14 August 2026.
- Net Power Reports Second Quarter 2026 Results and Provides Business Update, Yahoo Finance UK.
