NET Power and Rice Acquisition Corp. II completed their business merger, generating $675 million in proceeds and investing 100% of their shares in the merged firm.
The previously announced business merger between Rice Acquisition Corp. II, a publicly listed special purpose acquisition company, and NET Power, LLC, an energy provider with patented technology that provides clean, affordable, and dependable electricity, completed on June 8. On June 9, 2023, NET Power Inc. (NET Power) will begin trading on the New York Stock Exchange under the tickers “NPWR” and “NPWR WS”.
Market value and enterprise value for NET Power are both over $2.0 billion. With plant deliveries starting in 2026, NET Power anticipates that this contract will produce enough funding to adequately maintain its corporate operations and add to its backlog of utility-scale power plant projects.
RONI’s trust account contributed $135 million and $540 million, respectively, in PIPE capital from strategic and financial partners, giving NET Power a total of $675 million in proceeds from the Business Combination. Occidental additionally provided NET Power with a $10 million loan until the Business Combination was completed.
Occidental, Baker Hughes, Constellation, and 8 Rivers (SK Group), among other strategic investors in NET Power, have all invested 100% of their shares in the combined company.
Since the proposed Business Combination was first revealed in December, NET Power has raised the PIPE from $225 million to $540 million, begun Front End Engineering and Design (“FEED”) for its first standardized utility-scale project close to Occidental’s Permian Basin operations, and revealed a planned joint venture with SK Group to build utility-scale NET Power plants throughout Asia.
NET Power CEO Danny Rice said, “The deal fast-tracks NET Power’s technological research and commercialization, bringing the world clean, inexpensive, and reliable energy. NET electricity’s technology may accelerate decarbonized baseload electricity’s global implementation. I’m eager to collaborate with the group and promote this vital technology worldwide.”
Vicki Hollub, president and the executive officer of Occidental, said, “NET Power’s breakthrough technology supports our net-zero goals by supplying nearly emissions-free electricity to our Permian Basin operations and future Direct Air Capture locations. NET power distribution is the best way to cut carbon emissions and accomplish climate change goals globally.”
Baker Hughes Chairman and CEO Lorenzo Simonelli stated, “Due to rising natural gas consumption. NET Power’s near-zero emissions power plant design shows how climate technology can minimize emissions. We want to work with NET Power to spread this technology.”