Net Power Inc. (NYSE: NPWR) announced it has acquired contractual rights from EMPower USA to an approximately 123MW natural gas power generation facility under Phase 1 of Project Permian, being developed in West Texas. The acquisition closed on August 31, 2026, with Net Power paying $97.58 million in cash.
The acquired asset is a reciprocating-engine-based natural gas power generation facility comprising ten 20V31SG-B engine-generator sets supplied by Wärtsilä North America. The original EPC (Engineering, Procurement and Construction) agreement was signed with Saulsbury Industries as the construction contractor, and through this transaction, Net Power has assumed EMPower USA’s position under that EPC agreement.
The acquired power facility has a generation capacity of approximately 123MW, with the original EPC contract valued at $196.70 million. The acquisition closed on August 31, 2026, with Net Power paying $97.58 million in cash. The acquisition expands the total potential generation capacity of Project Permian Phase 1 to approximately 200MW.
The acquisition is interpreted as a move by Net Power to expand its portfolio addressing power demand in the West Texas region by securing the contractual position of an existing natural gas generation asset, separate from the commercialization of its own clean energy generation technology. By assuming the already-signed EPC agreement rather than negotiating a new one, Net Power is able to reduce the time and procedures needed for contract negotiation and bring forward the facility’s operating schedule.
The Permian Basin region of West Texas has recently seen active investment in new power generation facilities driven by surging electricity demand linked to rising oil and gas production, and this transaction is consistent with that trend of expanding regional power demand. Acquiring an existing EPC agreement from a third party is a transaction structure often used in the industry, as it reduces the risks associated with the early stages of power facility development while allowing an already-underway project’s schedule to be maintained. The large-scale adoption of Wärtsilä reciprocating engines illustrates how reciprocating-engine power facilities, which offer superior dispatchability and load-following capability compared to gas turbines, continue to be adopted for distributed and flexible power demand in the United States. For EPC firms and equipment suppliers involved, including construction contractor Saulsbury Industries, the fact that the existing agreement remains in place despite the change in project ownership could translate into a stable track record of secured contracts. The fact that the cash payment closed at a level below the original EPC contract’s total value suggests that, in transactions acquiring an early-stage project position, acquirers tend to price the deal while factoring in the remaining execution risk of the project.
When the actual commercial operation date will be set for the roughly 200MW total facility under Project Permian Phase 1 is the first point to watch. How Net Power will integrate and operate the newly acquired generation asset alongside its existing clean energy business portfolio is also worth watching. In addition, whether additional power facility acquisitions or new development will follow in the West Texas region is another point of interest. Whether the installation and commissioning schedule for the ten-unit Wärtsilä engine-generator sets proceeds smoothly also needs to be confirmed.