Net Power Shelves Carbon-Capture Tech, Bets on Gas for Data Centers
Net Power Inc has indefinitely shelved its Oxy-Combustion Cycle, or Allam-Fetvedt Cycle, technology to focus on unabated natural gas generation for AI data center demand, Rigzone reports. The Houston-based, development-stage company is instead pursuing a one-gigawatt gas-fired project in West Texas, to be built in phases on land leased from Occidental Petroleum, an investor in Net Power. CEO Danny Rice said the shift reflects what customers want now: “speed-to-power, reliability and scale.” Net Power has already contracted two modular gas turbine generator sets totaling roughly 68 megawatts for the site, known as Project Permian, and is evaluating additional gas power units. The company no longer expects a final investment decision this year and has not set a start-up timeline. Carbon capture remains a longer-term option that could be added in future phases. Net Power reported $312.91 million in current assets, including $117.93 million in cash, against $17.58 million in current liabilities as of the second quarter.
What It Means for Subcontractors
- Modular gas turbine buildouts like Project Permian favor subcontractors skilled in fast-track E&I, mechanical installation, and pipefitting for phased generator set deployments rather than long-cycle carbon capture equipment work.
- With no FID timeline set and Net Power still courting power offtakers, bid packages for Project Permian’s next phases remain pending; contractors in West Texas should track Net Power’s quarterly filings for FID announcements before committing crews.
- The pivot away from carbon capture technology signals fewer near-term opportunities for CCS-specific trades, but keeps future phases open if financing and offtake demand support adding capture equipment later.
