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DURHAM, N.C. - Net Power Inc. (NYSE:NPWR) shares plunged 57.3% after the clean energy technology company reported a wider-than-expected fourth quarter loss and announced delays in its first utility-scale project.
Net Power posted a Q4 adjusted loss of $0.67 per share, significantly missing analyst estimates of a $0.12 per share loss.
The company completed Front-End Engineering and Design (FEED) for Project Permian, its first utility-scale plant in West Texas, but found cost estimates "significantly higher than expected." As a result, Net Power has paused long-lead equipment orders and started a cost optimization process.
"Due, in large part, to today’s inflationary environment and the first-of-a-kind nature of this facility, the initial cost estimates reveal areas where we can meaningfully and efficiently reduce costs," said CEO Danny Rice.
Net Power now estimates Project Permian’s total installed cost between $1.7 billion and $2.0 billion, with the plant coming online no earlier than 2029, assuming successful value engineering.
To drive down costs, the company launched a feasibility study for a modular multi-unit plant design capable of up to one gigawatt of power generation. It’s also exploring coastal-based locations for deployments in 2030-2033.
Net Power ended 2024 with $533 million in cash and investments, down from $580 million in the previous quarter. The company spent $13 million on operations and $29 million on capital expenditures in Q4.
"With over $500 million in liquidity, we believe we’re in a strong position to advance the technology and optimize our plant design," Rice added.
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