NET Power to ⁤Merge with Rice SPAC ⁣in $1.45B deal

⁣ ⁢ Updated May 31, 2025

NET Power, a clean energy technology firm focused on reducing carbon emissions, will merge with ‍Rice Acquisition Corp. ⁤II (RAC II) in a deal valuing the combined entity at $1.45 billion.‍ Danny Rice, former Rice ‍Energy Inc. CEO and current ⁣RAC II director, leads⁤ the special purpose acquisition company⁤ (SPAC).

The transaction, expected to close in the second quarter of 2023, should provide NET Power ⁢with approximately $535 million in cash. This includes $225 million in PIPE (private ⁢investment in public equity) commitments. ‍The total‍ committed investment of $235 million features critically importent contributions from the rice Family ($100​ million) and Occidental Petroleum ($100 million), alongside smaller investments ‌from 8 Rivers, Constellation energy, and other investors.

The infusion of capital, ⁢exceeding $200 million in net proceeds, is earmarked to propel NET Power’s commercialization efforts. A primary focus will be funding its⁣ first utility-scale ⁢plant (SN1) in⁣ the Permian Basin, Texas, slated for commissioning in 2026. This project​ underscores the commitment to advancing clean‌ energy technology.

“Today, around 60% of global power generation comes from coal and​ natural gas-fired power plants‍ that produce reliable and low-cost power,” Rice said. “However, these plants collectively emit ⁤nearly 14 billion tons of CO2 per year, accounting for approximately 37%⁤ of total global emissions.”

Upon completion of the merger, Rice will take over as CEO of NET Power, succeeding Ron DeGregorio.

What’s next

The merger promises to accelerate the deployment of ‍NET Power’s technology, perhaps revolutionizing ‌how natural gas is used for⁣ power generation while minimizing environmental impact.‌ The Permian Basin plant will serve as a key exhibition of this clean​ energy technology.