Net Power secures 123 MW equipment deal and cost-reimbursement agreement to expand Project Permian capacity to nearly 200 MW

Net Power Inc. announced two agreements Tuesday aimed at pushing forward its power-first strategy at Project Permian, its first powered land project in West Texas. The company locked in rights to acquire 123 MW of new power generation equipment and entered a separate cost-reimbursement framework with a prospective end customer. Together, those moves bring total potential first-phase capacity to nearly 200 MW.

Net Power announces two agreements for Project Permian

These two deals represent a significant step for a company still building out its first commercial project. Net Power CEO Danny Rice called them “a practical next step in our power-first strategy”—a reference to the direction the company laid out during its second-quarter earnings call. The deposit and exclusivity agreement covering 123 MW of gas-fired equipment, paired with the cost-reimbursement framework, pushes total potential first-phase capacity at Project Permian to nearly 200 MW.

Rice was direct about the bigger picture. “When taken together, these agreements provide us the opportunity to secure and deliver more power sooner with appropriate financial protections,” he said. He also framed the structure as repeatable—a template Net Power plans to use when securing generation capacity at future early deployments.

The cost-reimbursement agreement provides financial protection during development and may support equipment financing, but commits neither party to a power purchase.

Why Net Power pursued these agreements

Net Power’s power-first strategy runs on speed, reliability, and scale—exactly what large-load customers care about most. These are industrial or commercial buyers who need high-capacity, dependable power and simply can’t afford gaps. Locking in equipment rights early is how you guarantee that capacity will actually show up when they need it.

The company signaled this direction publicly during its second-quarter earnings call, so Tuesday’s announcement is a concrete follow-through. Securing an exclusive path to 123 MW of equipment ahead of closing gives Net Power a real head start in a market where large-load demand keeps growing. Wait until all the paperwork is done before moving on equipment, and you might lose access to supply entirely.

The cost-reimbursement agreement adds a layer of financial logic. When a prospective customer covers certain documented third-party costs, Net Power limits its exposure during the development phase. That framework may also serve as collateral to support equipment financing—which could ease the capital burden considerably as the company scales up.

Key terms of the equipment and cost-reimbursement deals

The deposit and exclusivity agreement ties to a third party’s engineering, procurement, and construction position, along with associated power generation equipment rights for an approximately 123 MW gas-fired project. Net Power has already put down a $20 million deposit, credited toward the total purchase price at closing. That’s real money on the table before anything is finalized.

Closing is expected in the third quarter. At that point, a portion of the total cost comes due and gets paid from the company’s cash on hand, with the remainder following a milestone-based schedule tied to equipment manufacturing, delivery, and installation—a structure that spreads financial exposure over time rather than front-loading it all at once.

The cost-reimbursement agreement works differently. Under its terms, the prospective customer may reimburse specified, approved, and documented third-party costs that Net Power incurs in connection with the proposed acquisition and related project development. That reimbursement is subject to the agreement’s terms, procedures, and an aggregate cap.

Worth being clear about: this framework doesn’t lock either party into anything beyond its stated scope. It doesn’t obligate either side to sign an energy services agreement and doesn’t constitute a commitment to actually purchase power. It’s a financial protection mechanism, not a power purchase contract.

Project Permian and Net Power’s broader deployment plans

Project Permian is Net Power’s first powered land project, located in Texas. As the company’s inaugural commercial deployment, it carries considerable weight—both as a proof of concept and as a reference point for what follows. How Net Power structures deals here will likely shape how it approaches capacity acquisition at future sites.

That’s precisely why Rice’s framing matters. Calling this a “template” signals that these aren’t one-off arrangements. The deposit-plus-cost-reimbursement structure could become the standard playbook for locking in equipment and customer alignment at each new site before committing to a full buildout.

Net Power’s focus on large-load customers shapes how it approaches project development at every level. These buyers need reliable, high-capacity supply—the kind that smaller or less predictable generation sources can’t consistently deliver. Securing equipment rights early, before demand peaks or supply tightens, is a direct response to that customer profile. Both agreements remain subject to customary third-party consents, definitive documentation, and other standard closing conditions.

What to take away from these agreements

The core news is straightforward. Net Power made a $20 million deposit to secure rights to 123 MW of gas-fired generation equipment and separately entered a cost-reimbursement framework with a prospective customer. Combined with existing capacity, those moves bring total potential first-phase capacity at Project Permian to nearly 200 MW.

The cost-reimbursement agreement provides financial protection during development and may support equipment financing, but commits neither party to a power purchase. Closing on the equipment deal is expected in the third quarter. Net Power has been explicit: this structure is a model to repeat across early deployments—not a one-time arrangement—as it works to expand capacity and prove out the commercial case for its technology.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.