NET Power, a startup developing zero-emission power stations using the Allam-Fetvedt Cycle technology, has reported an additional USD 275 million of private investment in public equity (PIPE) commitments in connection to its proposed business combination with Rice Acquisition Corp II in December 2022 .

The new funds stem from Occidental, which increased its commitment to the PIPE by USD 250 million, and the Rice family, which increased its investment by USD 25 million. This brings their total commitments to the PIPE to USD 350 million and USD 125 million, respectively.

The new commitments bring the expected gross proceeds of NET Power’s business combination to USD 845 million. This consists of ~USD 345 million from RONI’s trust account and ~USD 500 million from the PIPE raised at USD 10.00 per share of common stock. Given no RONI shareholders exercise their redemption rights, the combined company is expected to have a market capitalization of over USD 2 billion. The transaction is expected to close in Q2 2023 and will be listed on NYSE under the ticker “NPWR.” 

NET Power expects USD 200 million of net proceeds from the business combination, with plans for the PIPE to fund the commercialization of its first utility-scale natural gas-fired power plant , which is set to be operational in 2026. Any net proceeds above USD 200 million are to support the capital needs of the plant and future commercial plans.

Lastly, once NET Power goes public, Ron DeGregorio, the current CEO, will be succeeded by Danny Rice, the current director of RAC II and former CEO of Rice Energy.