Net Power Inc. Suspends Oxy‑Combustion Agreements with Baker Hughes Affiliates

What Happened

• On September 8, 2026 Net Power, LLC (an indirect subsidiary of Net Power Inc.), Net Power Inc., and NET Power Operations LLC entered three integrated agreements with Baker Hughes affiliates Nuovo Pignone S.r.l. and Nuovo Pignone International S.r.l.: (1) a Suspension Agreement for the Amended & Restated Joint Development Agreement (A&R JDA), (2) a Suspension Agreement for the Commercial Agreement, and (3) a First Amendment to the License Agreement (collectively, the Transaction Agreements).
• The A&R JDA and the Commercial Agreement are suspended indefinitely (effective retroactively to January 1, 2026); the License Agreement is amended to create new industrial‑scale licensing terms (royalty-bearing upon commercial operation) while preserving NP’s exclusive utility‑scale equipment license. Access and exclusivity rights for the La Porte Demonstration Facility were terminated as of the Suspension Date.

Key Details

• Suspension Date: September 8, 2026; suspension effective retroactively from January 1, 2026.
• Royalty structure: royalties accrue only upon commercial operation of industrial plants that use NP’s industrial products; parties have 180 days to agree on terms or may refer to an independent expert whose decision is final (pending determination, NP may operate and royalties apply from first commercial operation). No royalty amount has been agreed and no party is obligated to deploy a plant.
• Financials and prior accounting: Net Power recorded a $193.7 million non‑cash impairment in the quarter ended June 30, 2026 reducing its developed oxy‑combustion asset group (including La Porte) to zero; amounts owed for work through Dec 31, 2025 remain payable and will be settled in cash and in paired shares of Class B common stock and OpCo units.
• Corporate/related‑party notes: Baker Hughes affiliates (including Baker Hughes Energy Services LLC) are parties and one affiliate beneficially owns >5% of Net Power common stock; the Audit Committee (all independent directors) reviewed and approved the Transaction Agreements as a related‑person transaction.

Why It Matters

• For investors, the Transaction formally halts Net Power’s utility‑scale oxy‑combustion commercialization work with these Baker Hughes affiliates and shifts potential future value to a royalty model tied to industrial plant operation — but there is no guarantee those royalties will ever be realized.
• Net Power retains ownership of certain IP but remains subject to NP’s continuing exclusivity for utility‑scale equipment, which limits the company’s ability to engage other equipment suppliers for utility‑scale projects.
• The company does not currently plan to fund further development of the Oxy‑Combustion Cycle; the prior $193.7M impairment and the open settlement amounts for pre‑2026 work are material items investors should monitor for cash, equity issuance, and dilution impacts.