NPWR - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the NET Power Inc.

First Quarter 2024 Earnings Call. [Operator Instructions]. It's now my pleasure to turn the call over to Bryce Mendes. Please go ahead.

Bryce Mendes

welcome Power's and Earnings Quarter everyone, Call. Conference morning, to First NET XXXX Good the we Operating call Executive on Officer, me With today, Rice, and Chief President Akash Allen; Patel. Officer, have our and Brian Chief Officer, our Financial Danny Chief our be our with can this ir.netpower.com. on we presentation XXXX, issued first of Relations release at earnings Today, our the Investor for quarter which found along website,

to to and those assume questions Rice, may Executive Chief During or may our forward-looking These this no in SEC and call, NET statements statements. results from are our statements. update and Officer. we with forward-looking differ to over that forward-looking by any note now responses Danny materially risks uncertainties risks obligation I'll stated remarks implied Actual uncertainties to our include With due associated Power's filings. discussed that, Please it pass business.

Daniel Rice

to presentation on and remains slides you where for all our We're track several handy. To remains to in for we website, product, scale utility project. our for reference on our to summarize are investor going date, the I'd have first posted those development us. joining track to Thanks development encourage we

we market thoughts on an favor. the macro. expected addressable faster let in some share and first, me on government is total project evolving expanding product Brian policy is Our update and provide than our will development. But

to coal market, only growth, expected energy this the trifecta particular, Despite supply capturing net among plants. rules, would widen a provide stands gas and which and new its prices EPA out the primarily emission hand, power primarily power solutions data baseload continues solutions XXX new free is Society's paramount plants supply must of its XXXX. growth, future them. centers equivalent that can really To for situation is higher the more the Diving power future the U.S. into prices from scalable everything delivering offerings. move all gas Section the makes coal In and between a in XX% need power, COX for on and demand operating elusive electrification outrunning and emissions the But supply current on its low its plants promise the power emerging rules these of and XX% interesting fronts of by the finalized really all of in deficit by will we of the power summarize induce that what coal must prize that implement century the than of affordable hold begin to remains and XXXX next think recently forward B&D handful clean, power plants. significantly higher. enormity is capture at reliable time, XX% emissions of gas a from

existing gas one for handily These will input. addressed emissions the it's rules our will plants think bar EPA down more the meet. industry. While We be gathers plants the line raise power that as

of And best it the post-combustion the Emerson near think or positioning generation plant today output. capturing or likely following above full When said that pair we're IRA As in mode carbon we of approximately is, Oxy power in incentives, capture XX% it our to will with to XX% marginal form we whether way about EPA combustion-based markets positions reminder, lowest Waldo carbon sinks. U.S. baseload versus as net a solutions, be rules partial Ralph at power best. of thermal become storage. And COX, the comply power cost world-class of COX I the we're is think load over

preparing future a chain world door. need for why manufacturing be And scale that the mustrap, our ready beaten perfect for we're the build reason, XXXXs. to early path for we up the and by your you will If supply significant build to it's demand,

OPX, application reliability working origination interconnection in side system, net the and our we the forward our grid submitted project. a the improving the to look We with MISO business. of Turning power through interconnect first to first in marks process originated critical for step This MISO.

OPI advance while ERCOT, Alberta including in we competitive as intended, prospective with So we're system. continues in partners other power origination opportunities markets, the active on additional to PJM, dialogue across CISO

Brian develop doing and this team aggressive and hard XXX everything companies programs. partners full-time plus and NET their to an industrial work. finding but and and to give team We think capital it's our that thank in the continue technology. see resources It's are our our shareholders financing make NET with update. to And a least, approximately cross-section I'd our infrastructure but like for can hand full-time commend data power, with supply partners is gas, now our not commercial a various have ways a active across chain success. across to over and I'd providers are sectors, origination Power like they it they're operational of for Power great it to XX job get deploy employees, easy, an interested last to maintaining dialogue oil schedule to to not along regional important I'll hub done, to our approximately another I center this. investor for

Brian Allen

Danny. Thanks,

steady La XX presented floor Baker our with all on presentation. revisit is the key make more depth cable equipment, Slide validation phase site continues facility to structural our our and team time electrical installing last as progress an and preparation team demonstration call, to into The Porte control I will busy making in this points for before testing. Hughes. It is to to and for campaign Turning upgrades in system slide, our exciting I which to key On going in modifications site the to equipment piping, testing near-term NET will in The preparation new our and turboexpander. did its on optimize the focus The utility to La grid Porte the follow on utility as we cycle, to and deployments. and developed we of X the turbo validity derisk test campaign port operation Power derisking synchronized will XXXX. will demonstration and steel, phases will primary such The the upcoming campaign cycle. concept how how for XXXX was standard continue this Baker scale facility within Hughes when prove scale the the of

in of The first on takes environment. which work is COX testing a Barmer, gas a oxygen where focuses phase Turbo and of natural of place the standard combustion

We oxyfuel will will configurations, select Baker heading phase. best burner and test the next into the burn multiple

in year. begin to testing of this I QX We expect Phase

combustion burner of tested liner testing and single will other phase second combustion full demonstration from selected us along to This car. a hardware combustion I with testing The take allow Phase conditions. form apport and a to oxy-fuel size and optimize will the demonstrator

and simulation the for including beyond. testing with fourth and and third use The used with will utility Power architecture The Hughes and the earners test validation clusters Turbo operate a combustor turbostandard, testing and design of with to of test data. scale this the the the Permian that testing will of the on design full the acquired scaling NET demonstrator involve project will of analytics size phase II performance optimizing will goal learning that can Permian. Phase models it buster in from Expander Baker Project the final between our then and materials of utility-scale can phase and demonstrator

overall standard and demonstrator the confirm turbo will dynamic We operability and cycle capability.

the of will minimize All cycle first plant overall to of residual that confirm Hughes the of to system allow control this plant Permian a us with risk design the we operations. Baker demonstration integrated ensuring and prior Project kind equipment, initial

how explain NET The validation Power out into XX. validated Hughes Slide cycle. campaign key enabling scale to will our turboexpander I before before utility technology the derisks the Baker the Turning is integrated new being deployments.

team most nearly the our short, by As turboexpander gas The Porte fashion. with and and reduced also will terms in in of both grid, the operators plant Hughes, same part and share Baker similar ramp thermal dispatch of follow up synchronized load a utility the turboexpander joint same similarity development will of it's our input. operation straighter combusting philosophy. in same the and turboexpander from turboexpander characteristics operating the demonstration commands are path manufactured of in version power, a the way existing In and benefit in an authority from buyers, a It architecture, Both accommodate the the of the similar is XXx design La different Form energy used designed La Porte turboexpander down. with gain quantity and parallel then are difference demonstrator combustion to being program float design burners started, shut and temperature. design scale utility-scale with although as scale paper to facility. and machines and has and the utility-scale share sharing pressure materials Both engineering maximum the a

the it's Hughes their Permian. So begin initial scale all the make data system. already validation update for to modifications Overall, operability turbine on results. the the plants lessons operation an improve it plant Baker this real it and having performance if NetPower controls of design, the Project And to Project of plant campaign what based learn, tune gained first allows control Permian, significant does plant derisk opportunity gain to optimize cycle our models to do and necessary, utility incredible and any to final allows -- other

with on initial X Project Permian. half for generation XXXX. expected power between I second to update schedule The Next, project of the XXXX will half turn on Slide occur remains and first to of an

are Our highlighted on key slide. XXXX upcoming milestones the

FEED of cable Utilizing the finalize components to compressors, completed that of process are cetera, so and them. stage our measurement and end materials complete long parallel primary exchangers, wiring, book XD flow up our the to information, front-end now instrumentation diagrams. the pumps, the Zachry their mass towards We piping with and then year. maintain total and equipment and FEED we quantification Zachry the at continue sets et has will layout diagrams order forth. open electrical been XXXX. all Year-to-date, the structural lead initial required, pivotal plant their or including design pipe, deliverables To this will throughout the and in can project the firm their of quotes estimate stage construct of engineering these advancing Together, steel, step and finalizing design. heat by heat project, They equipment proceed we this will of overall and schedule, cost have instruments, and valves, planned a defines balances, Zachry. piping concrete, advancing our

currently their are lead and expect generator and our schedule. to manufacturing plant that on the breakers We times out switchyard project circuit major bid step-up support will transformer

study also the interconnect our We to phase. have final progressed interconnection generation

a entering Regarding have made them our are early process we engineering. Together FEED Separation made equipment shortly. with on the Air progress phase have great Unit, provider, ASU, we selections and with or ASU and

We that, the in to have Odessa the work Akash ensure of we Gulf components to financial analysis Texas logistics lot from have I'll Midland ability the region. on to With X done locations on Coast a it for updates. pass off to transport the

Akash Patel

XXXX to million, of to allowed Baker cash of capital, including put balance Thanks, and cash under Brian. ending the of ADA. deploy approximately million which with operations first work our payment the $X to the $X Consistent continues corporate $XXX interest quarter balance NET past cash Hughes a spend. materially flow to than our has first million a quarters, the cash used strong Power several environment quarter, sheet investments. with us offset our in premiumly In included more the current approximately our rate was sheet,

and and interest activity at expect organization, continue However, La program environment the ramp the high increasing operations we cash flow joint forever, used to Porte. Hughes won't progress development in out we build up with Baker last this rate as

and authorized March $X XXX modifications approximately of of power million associated NET currently of XX.X net For million spent upgrades shares comprised shares outstanding, expected count X.X $XXX costs our million public Project this of issued outstanding on to expenditures begin B Hughes of testing of was A subject additional and capital the approximately that capitalized fourth approximately ahead upon $XXX the cash ongoing total development and give and quarter, Power's XX, as shares shares warrants Porte million in issuable year. approximately quarter fully exercise, XXXX. development Class Permian the is XX activities share with of private joint cash, diluted shares earnouts million requirements to to pursuant million vested This million La approximately which was of were $X comprised vesting $XX and Class the the Baker will million or if agreement. approximately an exercise million,

please refer I'll the the count, prepared back breakdown remarks. concludes to for open now our our up on For That it of operator pass to financials with annual a Q&A. file detailed to share the our line and quarterly SEC.

Operator

Thank you. Instructions]. [Operator

coming Our is Malloy first question Rice. Martin from Johnson from

Martin Malloy

us and maybe that question first about filing? location if the was information Can there's filing. with that interconnection or around associated geographic carbon sequestration filing the any a The the you give timing of for more

Daniel Rice

Marty, you. hear it's from Danny. Good to

and the filing In terms proceeding been past, partners side the in reasons. will like the trained, accepted at MISO goes like northern get next sequestration the specific and section publicly ultimately that I the in in into all Michigan from interconnect. MISO, then subsurface filing way the it's location, disclosing on way of But there permits be out MISO MISO. Classics It Louisiana of things, it of will just looking not in once the of and and will the phase all have our everything said competitive is down for we're be region. we're we've by Northern And XXXX. to the

So fast I we X think forward we'll interconnect MISO when and have we'll the Northern X have Class the system. years, into permits or X

needs to going the any soon on get other as kind really and plan That enough. Northern as power probably much clean is of MISO system everything we according plant there, country. couldn't power, in system So baseload that up really,

Martin Malloy

my the increasing just recent little talk see need the of power data additional for maybe that for the about you And customer maybe more you're types these the market cetera. manufacturing, conversations information faster second reshoring reports prepared for press talking the wanted remarks started conversations. et you about and you the than to centers addressable could And if a off with about total And nature provide question, Can with? having expected. and customers about

Daniel Rice

They been been companies type a few for over growing years. of for have the tech We've data the Yes. centers. while. baseload to power same companies the last talking the need It's a for

power necessarily new. not generation being I in picking participant than is to conversations, procure up almost those market are going the at they're to systems. what's wouldn't needing to in the rather of So active really the starting an open say They're source grid to just just look start

reliable over I only a power everybody from now think now starting just the think no affordable years. course is to EPA sacred that's everybody of an really few baseload kind last the when gone to of baseload I today. becoming And has ambitions commodity low-cost states pretty realize transpired there's clean And the abundant being that then most in at we with such looks across have ahead resource. the clean, really thing as

And a energy solutions so you potential are to being give to that pay lot folks neutrifecta. that those attention are developed more starting that

we're They're system seeing the of like power that MISO, shortfall is where industry you and tech tuck we're on who peak custodians by centers and we're probably all us operators shortage PJM, the a just see since but data ERCOT greater broader So is seeing a for even is saying, generation. for of the XXXX, seeing and too. system a power it of obviously think we're bit place these type of now bunch is folks, also power say power a the industry across utility I summer shortfall the seeing grid assets on from most Texas just is what amazing even abundant XX-gigawatt the side in in from significant general, generating primary been customers the which demand, seeing little have would the these

in board of of the kind net terms we're seeing interest power. it in So across folks'

inbounds, our we plant all first I when baseload That's online, us pointing that's so pathway affordable. And an new to think it's think these once carbon where I that's think entirely generate is is really to with have of I low power.

plant how of that full-scale I up on plants so the side, supply And dozens the we're to side, manufacturing the on his after on things produce scale comes per think mode we one where focused first the into particularly team online, is and able can year. of chain is quickly Brian operational these

potential we our power see important way. us the profile realistic and our see we I really is it's that certainly the that's because but that power unlike the shareholders for get number quite market align pretty we the help coming the said before, think and of knocking really, has it's to with business the of can industry We capture seen underlying the plus that just public. demands long-term we're but it's public extend a the one opportunity that kind reasons that in one it's door us ambitious business, seeing vision capitalize this So but anything also of why capitalized and it

Operator

from Next question MKM. Leo Mariani is ROTH coming from

Leo Mariani

I was discussion customer the hoping to expand a here. bit on

respect kind of there? still specifically OPX, to you that the NET Just something getting counterparty with that's maybe of about somebody actual engaged And sort committed early actually in progressing? of to into role. a Or there's kind is that have this some and stages guys step conversations is Power funding

that of #X. So maybe talk just kind kind I guess, of about project OPX,

Daniel Rice

sure, And be will if be ultimately #X or determined to serial serial still Yes, Leo. it's it #X.

is market in this I mean one-off XX about XX a power accommodate larger that project targeting NET to targeting much I one that the it's market just talking we're area is not that's right? think could envisioning than think a have project? not around the project, of of do way projects strategic us the to think the stakeholders total it Because I bring but flexibilities critical also I control originated the as into the one this what we gives just we're timing want plants. that creative the just plant over we really we're we're plant.

area. in really listed landowners And not cool of these quarters kind we opportunities where in deck OPX, our look so or like and level. some consortiums. the we It for of and partners providers, just But OPX. at various would a be that we are community to at that to ranges all the of is out to earnings there's whether government want co-location strategic ago the as one capital data to OPX it these infrastructure from the plants, the or local the centers and had of we be slide bring looking the partners, of stakeholders the just local at able start going stakeholders a And utilities into it's few

while so And gives partners origination real lot to I a us just it strategic bring what hubs of there's either neat think really having want is behind-the-meter solution. are of at their clean, Power one latitude the a the that I power powering stakeholders of hub, these NET affordable, whole the think is benefits this But or of reliable grid lot strategy center it. just from benefit the creative for of that do over that into because we for

we're it MISO these start days want setting origination we in out and for the we hubs. to be will in stakeholders this market imagine So to early really different hub. strategic the I what establish But each really have where would of are catered Northern

Leo Mariani

Okay. I appreciate talking that. And the about. up that all on cash then were just wanted to you quickly follow burn

million be kind kind they the burn? the I kind that of think like primary going CapEx kind referenced And million in the Can the balance any type You first in in quarter, capitalized, interest here kind accelerating might on internal of $X the of we do of of bit $XX spent. XXXX. actually But rates fall. components CapEx stay maybe steady, of you the you the that be cash What of of that? the rest expect, of of do was how of But do talked just $X think of see? know interest sort handles cash it component a to Do the million the cost, is you assuming you speak could progressing that I for about year? kind G&A? to some see of you

Akash Patel

we Leo. Yes, Thanks, there. Yes. spot are on

X components. So

$X.X quarter, the this were our which On of from million payment cash operations JDA, But under Baker includes we million. the roughly Hughes burn. cash cash that at burn approximately was $X.X

by you cash just right being run if multiplied is $XX and burn the you cash out from covered out that's the X operations back received back roughly So pretty a for annualized received. and million the cash by that materially and interest rate interest figure, now,

interest pretty out fortunate that the build a money down on rates start the CapEx on that business plan. as sheet, be actually But we prudent side, ensure rightsized seeing Now to our capital how spending come very we've we little that you'll continue we bit. and balance the accelerate we start overcapitalize to

when Go ensure dollars the the On overcapitalize million we that long project is balance $XXX transaction, the CapEx et of cetera. sheet we Public first the continue to the our side we house, into said on roughly releasing ways, that

active several negotiation of we're providers. in lead the Now with long

when and of which back get so we we accelerate. next that will out, year. color and the in long us hopefully, say keep pace exactly expect to then But a for that little the early The on for still but when terms later year quarterly said will Obviously, as this really cash pushed like still the it will that can Tim, basis to we'd of some door. important, over you can out And to can. are come as go haven't we through incredibly cash that be

Operator

today question from is coming Next Montgomery. from Thomas Janney Maric

Thomas Sellers Meric

of new I'm of this I EPA thinking On next the I general your and RTOs. about kind need want to ERCOT, But curious growth, generators, for years, couple to the think related the dispatchable thoughts a the risk build just dispatchable specifically, is resource. just demand, and dive into underwriting but the supply load about all of rule to

in the the dispatchable do the and demand few assets? really question So next generators how is specifically you years, see supply just of

Daniel Rice

think a question trillion think be at like may billion the Yes. I I $X It point. Thomas, this dollar question. that's No, even

lens a we've gas NET the we underinvestment few an power, coal have the grid was system kind like Really, over where the over seen since course baseload underinvested of in the you us the in the quarters last replacing of this, more really into really talking the in decade. of heard country, last of natural about assets revolution through underlying just when it this and then assets thesis baseload overinvestment think really renewable of I for shale we've the powered assets. course in dispatchable the

we saying, by And of and come the operator we the are hey, to XXXX. baseload so system uneconomic where power nobody notices off in are new now with end We're that all we're is have this baseload underutilized that problem real grid these system, the because seeing aging decommissioning plants just that are looking predicament of have generation. a real backfilling

so stuff of of data data centers And like this the do. all what aspire predated all forecasts the is this to kind load and new centers for

start that really to And of quite see start start emerge problems you so start when shortfalls to quickly. you kind to to just on top, add

and rules And gas want the generation. from which need ways reduce power coal if to to saying, emissions are then so we decarbonize, find hey, EPA we have we look, to actually really

a with NET totally from away. is was go gas power That just the make that you emissions you really generation, other to the grid, need to to really So of decoverize capture find agree away, to if the we coal Power gas basis and COX sentiment. not but colon generation way like power make really want go

is to NET And Power mission ways so that is decarbonize that the the grid. on really to find was

happening, before happen So will that too and that's long.

the that seeing growth to just with systems, by not going going be up that's grid to be met be just meet to able I ramp question that dispatchable to needs growth these met on dispatchable to that, power to get load affordable. power knowing the think that supply. real we're is load generation going baseload the is Otherwise, load is,

the folks are of $X EPA to just I is, EPA be to the sure going down effect new And combined the pike so But at chilling wanting growth that facilities, cycle load are in baseload, finalized. is is it's be litigated. we I'm question that build simple regulations know. I going a be are coming the point gas built to this going that's the meet which going seeing. see face on to that have going wonder like that we're highly to to to billion natural don't that cycle,

it's that grid see anybody's making the clear made think I to lower way want carbon that system. I solutions they EPA question. it its onto think has But the

and we Because investment way power So And should to what think of going the replaced it's the be everybody that's this signal we're generation the to to focused anything, meet what, we ruling really to I the kind being in market on this to able is continue to is natural its really the that think come could find gas. It investment the to out agrees say scale if gas. dispatchable gas. need EPA you unequivocally system low-carbon by from completely, just load to accelerate solutions. from is like guess I working to accelerate of through coal, only the deployment baseload be to ways way community going natural growth this the tend to trying need Kohl's but really of

really step put capital a that the NET to capital What really is into and up see can industry it's load of see to way more? the be And solutions we meet have is gas. is we're like become this to so the cool stuff I think to we step more put able going do to from EPA demonstrated Or and gas. growth going little lot to going need question be relax And are bit natural start a natural going clean going to a from really to that power deploying we its us work the the only rules to that generate industry scale. up Power at

plant EPAs decade. next the U.S. by but start really the targeted it Now for to after to really in the part online middle starts happening of goal targeted 'XX, able hit first goals comes 'XX, be our to the is

major down to have able have ready decade chain supply to per year be coming XX you're start prices next show get beginning by start be any happening XX/X law somebody really exists of because of will you system. to spike that being prices up really and be EPA shot pike. save you for be X that And those on combined a natural of power the I right plant that to have finalized to to We doesn't be put grid from those enough the to what's cycle rules would grid the by are not, going to able power major enough, to is the if if where load think end scale good. build a growth planes now year from plant into on for compliance to just induce see And that's up, more gas if the looking out

it's such us we want a once look, estimate, program, thing because to. down sort the we're a these unique XXth CapEx of with able But setup. U.S., interesting down is just plant. are and manufacturing $XXX And plant from into an makes say enough macro NET economic little just I that like was, So think bit hedged carat before is approach think our XXQ that us where to be for to Power plans the with I that's million an our first grid that's but to system just deploy to mode to across get trend the we especially about every ultimately in that by the we're

I necessarily in end the stick on We with back just at sitting prevail, should so like of just don't XXQ we're the with think commodity especially good day, economics we're where that a here because the a the the car. And end need power. a place

development need really that this we that that designed rules, thing the can get the if of But stick. And to stick in certainly, so accelerate leverage XXQ it compete form our mode the we being into necessarily then will what? are deploying to able so folks and just we manufacturing we're guess proactively that don't EPA means of down further the CapEx even be going to us just EPA come because accelerate the economics, more power that going mandate. that because that deploying is plants even their For to that on just we've

growth for rules us in great So EPA States. XXQ us for the set short I of is are amazing for and the the was the us. to United long think up already The it

think we comply think going way. good or kind to X I power I the to our be whatever have so together, put really, place when be whether not throws a the net to And you in EPA, with is the able of EPA really

Thomas Sellers Meric

response. A great

rule just curious just was been helpful. would a inclusion the curious, since reacted one or Power commentary private like Power of document. what published. handful EPA, Maybe about final just the companies of in of mentioned the anecdotes final conversations any was role NET I'm kind you have be in technology sector On of how that? that Or NET the to just

Daniel Rice

up we Yes. name been specifically The period. then example of pike carbon of mean opened We know color coming haven't think were it by last that following the on investors comment I proposed some the our an for as it rules just They for to fall. didn't I promising that the EPA up technologies called a too going capture get the side. down closely.

for an up period, of all Power. it then opportunity just ruling to proposed and of And open the circumstances just let they facts had not so they as that EPA, saw know, readers comment comment, that just other NET the of we but the everybody when their and

And the Power the so NET we of the a state matter state of of about just company. technology fact were The development. just

need believe that some onto this other a to proceeds a little to ensure uninterrupted. folks future faster. believe the to cleaner the we future bit from just been, scale need that properly get that demand split this public, to that rules. power there's to lower taken I broader meet current the the industry transition resulting We And up is on system we But company it. really to EPA ones have a be had grid capitalized business think, that's There's certainly, able we

So reliable uninterrupted power. affordable,

we want think the clean. want in source case, that I be power sides both down that right middle they clean, be to either unite that cuts reliable, it affordable really that power, want really there as like and reliable affordable, and to

to one trifecta. just the deliver said, have this of intro kind developed certainly, we've there's my natural energy really, being of a is way better lot cheapest decarbonize man, States. can do a especially low-cost And whole solutions using we the really energy the lot gas, can't ones. feedstock, And it a can of in And one X. that of see energy because all here Planet comments United power find we we feedstocks net tactic really we're on Earth, always So if is we the of probably today, not

to side something think it's middle a the think it that be rally I that people to terms support. to can going or down that everybody we'll get is around. in goes partisan we're of everybody be able aisle But other, but that the think right taking now, I bit one I right

a we significant a beyond there creating greater to just have the what on public And company with so this call, really to value. we're shareholder is do shareholders trying being that purpose much

Operator

coming from One. is question Capital next Suki Wade from Your

Wade Suki

to remember. time Just give wonder kind us but be asking memory and today. what for OPX you project? I dovetail maybe lines think I OPX might was see here. line size it you this time could about I the some It priorities or there can't disclose if a of Leo all a Vedat or maybe you kind might something, of did Marty shifting of as be

Daniel Rice

the so the serial size same Yes, as #X. OPX is

establishes as thing out the have And we So standard that the so it knows, coming a is to I across mode serial like world. in we're right? deploy design, and standardized that's #X important really of really U.S. everybody going the design plan think the manufacturing

identical and other single is we the really all so is going to think solutions have, that thermal this to one power versus really just be flexibilities Power every limit NET real generation And battery of is unique I plant you're plant, else a for ambient same. hotter versus everything that, if the absent other temperatures, be its this absent design, it every environment, about operability, the to will cold a one, size, the the in just but changes into environment

location mass And plant. so gives essentially neat us is it assembly crazy the we one want the spiked, this prices send of the start the really sooner. has the we given of over if we let's approach of flexibility it coming to can that what be any we allows accelerate send both other power that One when manufacturing for to market plant. And those is us just have also the in permitting online the economic is can a over But haven't can components a that deployment that in it do next. which to off thing proverbial get We where of that plants all projects first. line, modularize location it enables one of the gone plant us to mode another power reasons, prices to allows those haywire. of flexibility components We then to run tremendous other manufacture location components do the delays things. hopper always have where just versus into can But us couple

it's of have approach. bit an insurance like product a So little almost being the to standardized to able

power their commercial shareholders this need now, through being interest we're as here right baseload serial really in just just of area. And that of projects, "Okay, other now, able other social also we're the part versus it There's origination to prospective part own be dialogue is demand to going another, traditional this the kind is it's responsibility side. #X. really what's really, of to to one the dire but But it's opportunities we're much are of meet serious area like right have accelerate Now it sitting be other best than customers with on the saying, in line starting of projects. needs licensing lens accelerate in of to the developing one, us as for sooner project reliable power of to

the And or the what's certainly, have to think the think ensure XX enables day, design interest total the standardized that years, out going So to I of term. we best to think I at happens. flexibility XX we're end really us the when do of in shareholders long

Wade Suki

sense. total Makes

guess, Let's I the was take about that. things I commercial the like here. pipeline, next asked step,

as fantastic. but I'm priority hints it opportunities the in do in line in you can kind international geography mentioned be any You today? us Alberta, of or just on list pecking Again, where that order give see the would curious reside you

Daniel Rice

bit markets a we've interesting market Yes, the pretty Western little been like Canada, transparent just about are think market is international to I of specifically us. it's Canadian just power unique, The markets. competitive what a most U.S. because really

generation power So system an the MISO market or to ERCOT power go supply can Alberta. if power competitive a out build PJM is into anybody a just like there or where wanted ASO they

working on do now. where so And right area that's things an we where could we're origination and

area. an that's so And interesting

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plants make really really the these So would for key good power components necessary in the largest the to world sense. have economic I say markets

for to to going able of place supply to we're going demand I the power part for think is first the plants be going to we're to where is where market be much a going we're reality the decade. new than I next be think in of greater with net be

be we're to starting And look probably sooner want decarbonization. just markets power really it deploy to we're in plant have is sit we in if like where would a I say it's States, and job of XX starts And create, not of of value the to XXX scarcity those little we're that plant bit value gas coal, to ascribe net to I a be the nuclear really at things. really so prints amazing COX just which get they need our environment. step unfortunately, a really has United to value, looking lens to at United today, power are in place net looking environment net value net we which going have natural to Because form it's value I the a that most value for of United Tango, say close to up us through to it's than States, and we States pressing, the value really, the plant but and think the I competitive the power. good here to is now deploy going grid really access in the the It's on economic any system really to for replace ascribe going program other in system the just done a looking here at plants that is kind to of most United plants gas-based to today, States incentive because aging that in years intrinsic that's not just and market, to of to at sitting we the the XXQ given an decarbonization. spark And an at the do think don't, the spreads, countries manifest #XXX, the power. good think here going the power it at because power going plants to what of for sitting if looking U.S. and next looking also surface, comes thing of creating our the of that's and and markets to If us

and in for world. the the stay doesn't that to rest States and most U.S. decarbonize here of system, United awesome, the grid So anything decarbonized the but just next we the could decade do of fully that's really

XX in States. a grid similar I is are really Alberta the rest Qs Canada. to here tax up really pioneered up through we systems step of want carbon And a the the has So today world the value what that to we similar their the think place program United see where in in decarbonizing to on

Wade Suki

don't me, one mind. you last for if Dan, One

point, As agreement the company from just down the but kind line road, all think in would customer mode, in of line guess, through signing the see, let's I what when in? time everything is sort what XXs this you and say, the do at the plant permitting we're about you kind you of look manufacturing just to of start-ups, time

Daniel Rice

Yes, walk the turn a question. line one great that's I'll time that guys through you little to Brian a over bit. to

Brian Allen

Yes.

power So say, projects, more mode we with I'd that. for that's something manufacturing time. to end. project Permian, And it think the compress years of and said, as traditional initial to Certainly, absolutely want as X produce approach a we Danny end standardization, Project like maybe can over of

will not that design. someone overall plant get there's start idea we're even And required, So has is setting up company the leads a they There's not to work in there's being reengineering equipment, when want point inventory power work eventually, the which on require the that standard modular development, to the typical do reengineering design, the equipment, which ordered. is long to standard such what where we industry. potentially held being

supply chain, early the for usually part to the components If is turbomachinery, longest you in go lead stuff back instance. just of the

get have good knowledgeable customer OEMs of equipment in to into ahead sight that. they line coming, they see a and the forecasting are if demand how orders of the on out very So

ramp we're so reduce with inventory. ahead them into look Hughes overall out just Baker we commercial up nonoriginated we insight to But case and to in cycle. intent basically carry opportunities. the us upcoming the opportunities of They're the have engineering at get the participating with is not have where originated working all And of our early really, inventory, as committee commercial on participating

has years someone manufacturing standard the like shorter in it's modular design a operational. what power So the from should is plant way is only And even as you future our look target or there approach. get and net X until the idea

Operator

is today Barclays. Jang Betty Our question from next from coming

Betty Jang

data want to ask and demand. about I center the Great. go back

XXX-megawatt do a how Just wondering opportunity to do from to you the fit for big data specific size scale the Like of utility to size behind meter center? center? for the data is a what typical have power down solution

Daniel Rice

That's a great question, Betty.

to XX and back maybe data the big. meter those I there'll whether think if if connectivity a too net generation be behind diesel on-site center we go power a the system X because just partial would cases, in went rest we going say, maybe off-grid or it's the through data solution. just to to center versus is load grid plant the would they're need grid years, redundancy, solution an going backup or the truly yes, And is into

really I at going We're size the think in to XXX of just tomorrow hyperscale these today talking data are look if data the up these centers gigawatt. a magnitude massive you of and facilities. of megawatts centers, the on

which you And product are really, Power ideal data like said, so to just the large. almost at the we fit, centers, are, I look market going NET like really be really market for these if product fit

to we you what conducive really the Now fit. data with a deployments. gigawatt standardization, guys are that's we're XXX said, fleet really if What at it you because a center, doing and gigawatt, market a data sites not look megawatts XXX, is only you are the that's okay, good

small these reactor block XX-megawatt XXX they like a of to starting are of like with modules, or doing except a blocks or instead XXX XX- are, the modular So sort nuclear, block. with you starting way SMR folks guys, think need almost like to like we're with megawatt of the the

take that farm a up or XX acres you farm and would their a net power to require we're up fleet to of just acreage give power gigawatt will fleet terms require to of intermittent a amount for to gigawatt, a X so X,XXX power them wind that together of plants solar in takes a all a of the that the net And that putting of just gigawatt. in acres would XX contrast a XX,XXX just generate configuration. acres And really

just solutions. someone about dense, of scalability talking not large in importance and talking really, about you sort of centers the increasingly energy but power to terms just we're multi-gigawatt of next actually also the need what really They power-dense can of to are we're multi-gigawatt looking power output, it co-locate So these sort a that build hyperscale really of facilities. data do density

And or nuclear looking really so that to combined or really power. either from come energy cycles large-scale needs for it trifecta from that

we're we the up in for that's, So origination we're to net focuses need grid of to coming to both center to trying need we're think, it, power the need big is to really set deploying, but look at us these one where going to energy also areas data the are that set the hubs I just folks these these XX meet decades. hubs, up, that looking call meet XX plants, behind-the-meter over

Betty Jang

the to If That's looking for tied tech grid? follow-up conversation I they really solutions? have Or a it your great that. are color. is with on just companies, In behind-the-meter

Daniel Rice

reality model of for learning data operate, in centers power. the way I need interruptibility these have just need, think like they their the centers, is thing, language especially the to data any most they LLM important can't

over can at language think about start so again. take of And week. going there's If training first they all if a have to that end interruption, you weeks, is and couple paramount reliability an programs through because the and these of the

as is critical their for affordability expense power data as reliability the power so and that But because that these there up they way isn't to. again, a redundancy ability reliability right with just critical absolutely to consumption, of of to piece. the largest perform latency is. The reliability And is need source is centers

need no probably than so tech And of really affordable, clean, folks. that's energy reliable impressing there's the just trifecta industry greater the

of all challenge look is that the does when the across all there, we're nothing facing spectrum there's potential I we that all think solutions out X.

having where to of you're affordability. on kind compromise have a You bit portfolio to create a

You haven't on bit compromise to a reliability.

to able having order little the to to a You your on carbon power meet in bit needs. compromise be intensity

where there think we're no that so is designing really thing is And compromise. I what really

see last going you're clean net power? I think couple for where having the is fuels people possible shift and decades, think we Because how really a being with are as paradigm clean. power it's the I haven't get of adjustment to looked at to

about source start all at really of is looking getting people paradigm we're stop at And as is so the the end start I source at that's intensity the carbon all to emissions. of power, Nature the giving the where this looking cares plane. them you're the measuring because power the care I my the the end what's is labels, day, the changing looking don't output, Mother at the for incoming the to care carbon stop be intensity outgoing fuel about plant. all about

paradigm think the what really, starts really so And of affordable, to I the because clean, into to the at have away everybody introduce process you everybody of really that's output And feedstock like But away is to I over at gas moving from we're think change reliable question natural all transformed fossifuels. power, an for that just of think all a that the we baseload technology decarbonization, shifting really looking Power And I we power, now NET a the It agrees important. conditioned is end us firm sudden, looking this of of starting affordable. decade it. important. power moving the at education of make think dispatchable when day last clean really been you've the is when think paradigm you sources from of

public that was And on the one reasons to output open that, okay energy more that people sudden, we lot about agnostic to and we entirely I an source And about know pathway of energy is to It's think as that's of world's of it natural conversation what? can the I able start both but a to problem. I proud one NET we much the platform fossil to solution the there question, to be more of bullet the from gas needed the and tangent environmental the package. the now original affordable big little it's a environment world all and all that's the clean, new think the need not a really something I why is of that bit bit be a a You grid and Power a use very able is. took as communicate for I have both silver to the just think think went about so where technology, the planet. to And I that So little And deliver a that on and to we're focused to valuable to say more guess energy. solution embrace power, we decarbonize in up energy fuel. reenergize coming from but we're

Betty Jang

agree with more. that I I mean can't

Just think carbon measuring by the EPA on pens. I intensity to actually should be covering everything the that regulation helps NRM. a drive And forward lot

needs So to just on I finalize tested Permian with Project follow-up before you long-term the be provider steps. the a have air that what separation can next But unit partnership.

about the rest open what more And Just book wondering if an can plant? just then the integration, well that's you is a of it it is financial talk separately, technical with Or negotiation? estimate? fits whether

Brian Allen

that. This separation take is units. Yes, air point. mean large this a Brian. at integration of I'll Sure. I more these technical it's are

say, off the So they're on very let's stacking technology risks. shelf, we're focused but not, directly not

equipment ASU are So and of more sale plant. have that into The will of through EPC commercial for will design the right flowing owner integrating plants been through we the an an power or about providers purchase approach, integrated technical be aspects be it's So before many equipment integration. the proven ASV really getting experience? the past model the integrated where this

other from It's a standard that not together. NET words, Power the comes separate plant. in design there's ASU distinguishable So a

industrial lot future overall feed. because also into So we're suppliers a in they technical deployment from discussion. integrations through it's know a We had the that's those this working on this design. all them then, standard sets project integrating that And of for commercial really gas interest up first yes, entry plant

of really the technical through commercial, first, get there's So and some but aspect development we're the the right, working this. embedded technical into no get fully feed,

question, we exactly, the of book we costs. see open when far estimate the with as As all other work means

we're quoted approach we're directly on where you a want have which could work cost what our there engineering different cycle So with and pursuing. driving lump a just is not sum where them to value understanding price, is We with design.

So we the see all of costs.

Operator

one time, Tuohy of In the Brothers. final from interest Parks we have Noel from question

Noel Parks

couple. covered gas about a scale, gas. I I'm just of the lot the whether various have course, wonder more smaller I around of solution, some sort thoughts really for you've had Just do if interesting power on running a approaches fastly natural expensive, you cells of touches any maybe fuel on think, macro instance, decarbonization. of wondering, for and

is the of or as to on little a concerned down larger price online out so struggles guess, shut maybe like either going whether a I projects have whether speed to there it sensitivity much Paramount attention is that that as plans that? of, investment So longer going you sort bit. kind get place scenario to to your to but there a could benefit in whatever be closer and thoughts just Have any

Daniel Rice

it's one No, interesting Yes. Noel. an

having gas peak a be on heck adding more folks to to ways fuel system. can just cells lot to natural are doing the of they battery trying just find peakers by storage launch think wherever the able by pricing I by

isn't is for. just was really XX/X, really think of I demand gets load a think able growth is batteries new think a fuel they gas the coming our seeing problem EPA of has XXX. are something to people just This sheer load bit just be if power just industry it able frankly these much proven to it's can we're chilling both with whether growth power I of load last challenge decades. intermittent. just that load little that growth deploying compounded really the the has way do the couple over industry scale effect really volume, that the the think And in or quick, dispatchable being cells the is on to the rules, going really, is demonstrably I the that way coming generation meet sources natural generation that's this course because of kind growth I don't of like flat-footed

power energy mirror to and So look just that. that can at sources you generation for just need really really match that

then you're really and so And things natural nuclear looking gas. at like

terms of And other capacity, XXX think of looking actually these edges. to I really gigawatts up all generation gas really new of XX you're XXX the scale to baseload to to deliver so generation will around being natural solutions. able at going help to in things based I be think But

the at to to that Power? going And intensity like gets to be lower going back natural Or are so it's And you carbon of the think because either combined is capture. cycle very energy looking that have be the is looking cycle you're Power cost gas up be you're blue like it trying because separate to power post-combustion to out I which back if going of XX% to technology need that the NET carbon that thesis in think something having at the that emissions XXXX. And first the of a of is was on simple the a really challenge it invented XX% whole when to of and to is goes the the eliminate simplicity simple cycle just process to Empower power COX a really you actual was place the the nitrogen generation nitrogen only gas we very, XX% and to really generation, net natural I COX. of actually or beauty it, and the in into if to NET of power of from the want redesign expensive because it plant is statement backside gas,

of the the I'm all is problem problem the is capture it on right? the being the COX, able that but COX, problem sorry, is of root So to the nitrogen.

and oxy simplicity from it do nitrogen from cost and is the the Power oxygen. NET atmosphere the of so the the the And to effective simpler front separate end. much cycle, combustion easier on It's

to oxygen. the is So pure only that going chamber combustion thing

in with knowing years today is NET and where think like are I where the where emissions we patented focusing today, this went But the generation go wants gas go will we sitting solution world NET process. reducing wants think with on I time, in from be the eliminating now. XX so EPA Power people is emissions, we on back know what exactly we us power And natural to to thing what Power a

is do really, And so really ones this as are scale. why I we at proving think this in we're much on only that's this that we've Permian the And we're hyper-focused unique at really position, can really as which in this IP of ones do put this there portfolio out utility this scale the of size only with Project can that sort business. around XXXX. We're the because

to first so plant to online that And scale XXXX we're beyond. that able up and comes in it's so be to there imperative

in. of scary going a be the of the it's wants, is only and yes, need can really to be to being one demand terms so what the a customer situation also just reliable for It's that meet we're And government for growing good power. clean but in because solutions one able both comply baseload just comply to also

have this I companies a be we group, forward-looking both X super have largest, going we comprise energy it's that And very of group. shareholders but ready. we're the most our brought really shareholders Constellation. been supportive shareholder the Oxy, that strategic SK, well-capitalized, public Baker into mean company, company, have great so the of also strategic Hughes, who public that most we to shareholder the And supportive

to scale want established I the this So I our to think foundation to the that foundation able company we've that is public us think be have. shareholders

improve really growing to need creates pathway world's scale, clean to entirely at this meet to the an in this execution really scale for we're system and the And the decarbonize just prove utility this cycle power. baseload so at affordable technology point, new grid

Operator

our to further over the the We've end like closing any comments. or of turn you. Thank back question-and-answer for I'd reached floor session.

Daniel Rice

X joining everybody, you, it is afternoon. good on we'll for catch was today. us This informative Have call really Hopefully, hopefully, months. fun. the Thank a and next in you

Operator

webcast. Thank you. and today's conclude That teleconference does

disconnect at you have your and may your participation this today. time, thank for wonderful line You day. a We

NET Power (NPWR) 13 May 242024 Q1 Earnings call transcript