NET Power Inc (NPWR) 2023 Q4 法說會逐字稿

Greetings and welcome to NET Power Inc. fourth quarter and year end 2023 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. At this time, I'll turn the conference over to Bryce Mendes, Director of Investor Relations. Mr. Mendes, you may now begin your presentation.

歡迎參加 NET Power Inc. 第四季和 2023 年底收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。這次，我將把會議交給投資者關係總監布萊斯·門德斯 (Bryce Mendes)。門德斯先生，您現在可以開始您的演講。

Good morning, everyone, and welcome to NET Power's fourth quarter and year end 2023 earnings conference call. With me on the call today, we have our Chief Executive Officer, Danny Rice; our President and Chief Operating Officer, Brian Allen; and our Chief Financial Officer Akash Patel.

大家早安，歡迎參加 NET Power 第四季和 2023 年底的收益電話會議。今天與我一起參加電話會議的還有我們的執行長 Danny Rice；我們的總裁兼營運長布萊恩艾倫；以及我們的財務長阿卡什·帕特爾。

Yesterday, we issued our earnings release for the fourth quarter and year end 2023, which can be found on our Investor Relations website, along with this presentation on ir.netpower.com. During this call, our remarks and responses to questions may include forward-looking statements.

昨天，我們發布了第四季度和 2023 年年底的收益報告，您可以在我們的投資者關係網站上找到該報告以及 ir.netpower.com 上的簡報。在這次電話會議中，我們的言論和對問題的回答可能包括前瞻性陳述。

Actual results may differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with our business. These risks and uncertainties are discussed in our SEC filings. Please note that we assume no obligation to update any forward looking statements, but that I'll now pass it over to Daniel Rice, NET Power's Chief Executive Officer.

由於與我們業務相關的風險和不確定性，實際結果可能與前瞻性陳述中明示或暗示的結果有重大差異。我們向 SEC 提交的文件中討論了這些風險和不確定性。請注意，我們不承擔更新任何前瞻性陳述的義務，但我現在將其轉交給 NET Power 執行長 Daniel Rice。

Thanks, Bryce. Hi, everyone. Thanks for joining us today. I'll provide some thoughts on the encouraging macro setup for NET Power and how it plays into our three pillar corporate strategy. I'll recap 2023 highlights, and I'll share what's in store for 2024. And then I'll hand it over to Brian and AKash for operational financial updates.

謝謝，布萊斯。大家好。感謝您今天加入我們。我將提供一些關於 NET Power 令人鼓舞的宏觀設定以及它如何融入我們的三大支柱企業策略的想法。我將回顧 2023 年的亮點，並分享 2024 年的計劃。然後我會將其交給 Brian 和 AKash 以獲取營運財務更新。

Starting with the macro, we continue to see very positive signals that future load profiles will require more low-carbon generation for two distinct, but related applications, first generation that can load followed to balance intermittent renewables, while in other instances serving as 24/7 clean, reliable power for baseload industrial and behind-the-meter applications.

從宏觀開始，我們繼續看到非常積極的訊號，即未來的負載曲線將需要更多的低碳發電用於兩個不同但相關的應用，第一代可以負載隨後平衡間歇性可再生能源，而在其他情況下充當24/ 7 為基本負載工業和電錶後應用提供清潔、可靠的電源。

What makes NET Power very attractive is that our power plan is designed to serve both of these growing markets and because of low-cost natural gas, the feedstock to our patented process, we believe that power plants will be the lowest cost option to do so for both anecdotally, our first plant project Permian, which will inevitably And unsurprisingly be the most expensive plant we ever build, is expected to have a lower levelized cost per kilowatt hour, then new nuclear, new geothermal and new hydro.

NET Power 非常有吸引力的一點是，我們的電力計劃旨在服務這兩個不斷增長的市場，並且由於天然氣成本低廉，是我們專利製程的原料，我們相信發電廠將是實現這一目標的成本最低的選擇有趣的是，我們的第一個電廠項目二疊紀將不可避免地成為我們有史以來建造的最昂貴的電廠，預計每千瓦時的平均成本較低，然後是新核電廠、新地熱電廠和新水電廠。

And as we move from project Permian to SN. two and into full-scale manufacturing mode, we'll expect to quickly begin moving down the CapEx curve and really begin to differentiate and that powers affordability from other forms of reliable, clean generation on the topic of reliable generation, one fairly nascent segment that has gotten the market attention lately is data centers and hyperscale data centers, in particular, given the robust load projections for AI.

當我們從二疊紀專案轉向 SN 專案。兩個並進入全面製造模式，我們預計將迅速開始沿著資本支出曲線下降，並真正開始區分，並在可靠發電這一相當新興的領域，增強與其他形式的可靠、清潔發電的可承受性最近引起市場關注的是資料中心和超大規模資料中心，特別是考慮到人工智慧的強勁負載預測。

These data centers are hungry for power they're expected to become one of the largest segments for load growth in the U.S. through 2030 and beyond. And because our NET Power Plants are designed to deliver low cost low carbon intensity, 24/7, reliable power. We think our product will be the best fit amongst options for this category, similar to how we assess all market opportunities, it begins with mapping out where these plants make good sense.

這些資料中心對電力的需求旺盛，預計到 2030 年及以後它們將成為美國負載成長最大的部分之一。因為我們的 NET 發電廠旨在提供低成本、低碳強度、24/7 的可靠電力。我們認為我們的產品將是該類別的最佳選擇，類似於我們評估所有市場機會的方式，首先要確定這些植物的用途。

The mapping criteria for these bright spots unique the mapping layers are existing and planned fiber geology for sequestration, ambient temperatures to ensure efficient data center cooling needs and access to natural gas. One of the criteria that's nice to have, but not a need to have is proximity to power transmission lines given the 24/7 dispatch ability we're designing for our plants. We expect we can go off grid and put these data centers where they're best suited.

這些亮點的映射標準是映射層的現有和計劃的光纖地質隔離、環境溫度，以確保高效的資料中心冷卻需求和天然氣的獲取。考慮到我們為工廠設計的 24/7 調度能力，接近輸電線路是很好但並非必需的標準之一。我們希望能夠脫離電網，將這些資料中心放在最適合的地方。

This layered map creates quite a number of interesting bright spots across North America for future net power plants for the segment. Interestingly, no modifications would be required for our plants. The initial size we're bringing to market with Generation one will be targeting roughly 250 megawatts.

這張分層地圖為整個北美地區未來的淨發電廠創造了相當多有趣的亮點。有趣的是，我們的工廠不需要進行任何修改。我們第一代產品推向市場的初始規模目標是約 250 兆瓦。

So we can see perfect pairing of net power plants with a single hyperscale data center. And as you see these data centers becoming larger up to 750 to 1,000 megawatts. It really lends itself to NET Power's modular design in order to deploy fleets of three to four net power plants to match each data center slowed. The reason why I mentioned this market is it really reinforces the importance of our three pillar strategy.

因此，我們可以看到淨發電廠與單一超大規模資料中心的完美配對。正如您所看到的，這些資料中心的容量不斷擴大，高達 750 至 1,000 兆瓦。它確實適合 NET Power 的模組化設計，以便部署由三到四個網路發電廠組成的機群，以匹配每個資料中心的減慢速度。我之所以提到這個市場，是因為它確實強化了我們三大支柱策略的重要性。

First prove this technology utility scale. We think the world needs NET Power like no other technology in the sooner we can prove it the sooner the world can begin implementing a better pathway to energize and decarbonize second, build the supply chain to quickly scale deployments in manufacturing mode because we have such an enviable patent portfolio around our process.

首先證明這項技術的實用規模。我們認為世界需要像其他技術一樣的NET Power，我們越早證明這一點，世界就能越早開始實施更好的途徑來實現通電和脫碳，其次建立供應鏈以快速擴大製造模式的部署，因為我們擁有這樣的我們的流程擁有令人羨慕的專利組合。

It's really only net power that can generate low-cost, clean power for the variety of applications we're pursuing, which means we need to be prepared to deploy our plants at meaningful scale to meet the needs of not just the data center industry for utilities to meet the baseload and load following needs of grid today. And as Brian will touch on in a bit, we're ensuring the partners we pick today have the ability to scale with future demand.

實際上，只有淨電力才能為我們追求的各種應用產生低成本、清潔的電力，這意味著我們需要準備好以有意義的規模部署我們的工廠，以滿足不僅僅是數據中心行業的需求公用事業公司可以滿足當今電網的基本負載和負載追蹤需求。正如布萊恩稍後將談到的，我們確保今天選擇的合作夥伴有能力根據未來的需求進行擴展。

And the third pillar is to build the backlog of projects to fully activate the supply chain strategy. And we're going to use our origination strategy to catalyze early adopters of net power plants, bringing strategic partners to these projects to accelerate their learning in order to accelerate their own license deployments across their targeted operating areas.

第三個支柱是打造積壓項目，全面啟動供應鏈策略。我們將利用我們的創始策略來促進淨電廠的早期採用者，將戰略合作夥伴引入這些項目，以加速他們的學習，從而加快他們在目標營運區域的許可證部署。

On this last point, we're making good progress on our first originated project OP-1 and are actively working on several others, all while advancing discussions with prospective customers across Canada, US, the Middle East, Australia and Europe for deployments beyond serial number one, recapping the past year for a minute, '23 was a pivotal one for NET Power.

關於最後一點，我們在第一個項目 OP-1 上取得了良好進展，並積極致力於其他幾個項目，同時與加拿大、美國、中東、澳大利亞和歐洲的潛在客戶就串行以外的部署進行討論第一，用一分鐘時間回顧過去的一年，23 年對NET Power 來說是關鍵的一年。

We raised significant capital through our public listing, which will allow us to develop and prove our technology utility scale. We commenced the feed program for our first utility scale plant, which will be located on Oxy Houston site in West Texas.

我們透過公開上市籌集了大量資金，這將使我們能夠發展和證明我們的技術實用規模。我們開始了第一個公用事業規模工廠的飼料計劃，該工廠將位於德克薩斯州西部的 Oxy Houston 工廠。

We added Lummus Technology to fulfill over cooperative heat exchanger supply chain strategy. And we announced development on our first originated project, which relocated in the micro region. All of these accomplishments are stepping stones towards deploying that power plant at mass scale by next decade.

我們加入Lummus Technology來實現超合作的熱交換器供應鏈策略。我們宣布開發我們的第一個原創項目，該項目搬遷到微觀區域。所有這些成就都是未來十年大規模部署發電廠的基石。

In 2024, we have a few key milestones to highlight. First and foremost, we plan to begin the first of four phases of combustor in turbo expander equipment validation at La Porte. In a few moments, Brian will provide additional color on these testing campaigns and why they're still important to validating the equipment and expected performance of SN-1 at project premium.

2024 年，我們有幾個重要的里程碑需要強調。首先也是最重要的，我們計劃在 La Porte 開始渦輪膨脹機設備驗證燃燒室四個階段中的第一階段。稍後，Brian 將提供有關這些測試活動的更多信息，以及為什麼它們對於以項目溢價驗證 SN-1 的設備和預期性能仍然很重要。

Second, we expect to complete feed a project Permian and we'll begin to form the project strategic on the group. As a reminder, net power considered various federal programs to supplement the funding for us and one, including the DOE grant program deal, we announced the recipients of the grant in December, which didn't include project Permian.

其次，我們期望完成二疊紀專案的供給，我們將開始在該集團上製定專案策略。提醒一下，Net Power 考慮了各種聯邦計劃來補充我們的資金，其中包括能源部撥款計劃協議，我們在 12 月宣布了撥款的接受者，其中不包括二疊紀項目。

It's important to note that the goal of project Permian is to deploy our technology utility scale with safe, reliable operations. And the DOE grant would have required clastic sequestration, which due to the specific geology in West Texas at uptake risk and materially increases sequestration cuts to the project. When we first announced Project Permian in 2022, our plan was for net power in the strategic owner group to fund our first projects. This remains the plan and we expect to announce more details regarding the funding strategy later this year.

值得注意的是，二疊紀專案的目標是透過安全、可靠的營運來部署我們的技術公用事業規模。美國能源部的撥款將需要碎屑封存，由於西德克薩斯州的特殊地質情況存在吸收風險，這將大大增加該項目的封存削減。當我們在 2022 年首次宣布二疊紀專案時，我們的計劃是讓戰略所有者群體中的淨電力為我們的第一個專案提供資金。這仍然是計劃，我們預計將在今年稍後公佈有關融資策略的更多細節。

Our third 2024 expected milestone is to finalize and announce our long-term strategic partner for the air separation unit or ASU one of the critical components of our cycle. And finally, we'll continue to advance additional NET Power origination projects. This includes submitting our application for interconnect and Class six wells that OP-1 and moving a couple of other origination projects along in order to talk about those locations more publicly.

我們 2024 年的第三個預期里程碑是最終確定並宣布我們的空氣分離裝置或空分裝置（我們週期的關鍵組成部分之一）的長期戰略合作夥伴。最後，我們將繼續推進其他 NET Power 原創專案。這包括提交我們對 OP-1 互連和六級井的申請，並推動其他幾個起源項目，以便更公開地討論這些位置。

So as we wrap up our first calendar year as a public company. Our thesis for NET Power is playing out faster than expected. The world needs clean, affordable and reliable power. And in my mind, NET Power is the only solution that adequately adequately checks each of those boxes because of the patent portfolio around the cycle, we're the only ones who can do it. And so we've got to do it right, and we've got to be ready to do it at scale. I couldn't be more excited for what's to come as we continue to develop and deploy technology. The world desperately needs.

當我們結束作為上市公司的第一個日曆年。我們關於 NET Power 的論文的完成速度比預期的要快。世界需要清潔、負擔得起且可靠的電力。在我看來，NET Power 是唯一能夠充分檢查每個方框的解決方案，因為整個週期的專利組合，我們是唯一能夠做到這一點的解決方案。因此，我們必須正確行事，並且必須做好大規模實施的準備。隨著我們繼續開發和部署技術，我對即將發生的事情感到非常興奮。世界迫切需要。

So with that, I'll hand it over to Brian for operational update.

因此，我會將其交給 Brian 進行操作更新。

Thanks, Danny. The team continues to make steady progress developing project Permian and our NET Power Technology. On Slide 8. We highlight several key milestones completed in the last few months as well as milestones we plan to achieve in 2024. For project Permian in the fourth quarter of 2023, we signed our limited notice to proceed or LNTP with Baker Hughes for the release of long lead material for the utility scale turbo expander.

謝謝，丹尼。該團隊繼續在 Permian 專案和我們的 NET Power 技術開發方面取得穩步進展。在幻燈片8 上。我們重點介紹了過去幾個月完成的幾個關鍵里程碑以及我們計劃在2024 年實現的里程碑。對於2023 年第四季度的二疊紀項目，我們與貝克休斯簽署了有限通知以繼續進行或LNTP釋放用於公用事業規模渦輪膨脹機的長鉛材料。

Issuing LNTP for the primary Turbomachinery of a power project is one of the key critical paths of the overall project schedule, and it allows Baker Hughes to release orders to its major material sub-suppliers in support of our schedule. More recently, we initiated engineering work with our selected ASU. provider and executed our land lease agreement with Oxy for our plant site in West Texas.

為電力項目的主渦輪機械發放LNTP是整個項目進度的關鍵路徑之一，它使貝克休斯能夠向其主要材料分供應商下達訂單以支持我們的進度。最近，我們與選定的 ASU 啟動了工程工作。供應商並與 Oxy 簽署了我們位於德克薩斯州西部工廠的土地租賃協議。

These achievements allow us to remain on schedule for the project with initial power generation expected to occur in the second half of '27 to the first half of 2028. As Danny mentioned, this year, we expect to complete project Permian FEED and to form the project consortium this year. We will also negotiate key supply and offtake contracts and solidify our financing strategy with our strategic partners and owners.

這些成就使我們能夠按計劃完成該項目，預計首次發電將在 2027 年下半年到 2028 年上半年進行。正如丹尼提到的，今年，我們預計將完成二疊紀 FEED 項目，並形成今年項目聯合體。我們還將與策略合作夥伴和業主協商關鍵的供應和承購合同，並鞏固我們的融資策略。

It's important to note that net Power's capital will be the first dollars into the project, ensuring long leads are secured at the appropriate time to maintain schedule ahead of additional capital commitments by our consortium partners. We will order additional long-lead components, including the recruitment of heat exchanger and major electrical equipment throughout 2024.

值得注意的是，net Power 的資本將是該專案的第一筆資金，確保在適當的時間獲得長期領先優勢，以在我們的財團合作夥伴做出額外資本承諾之前維持進度。我們將在 2024 年訂購額外的長週期組件，包括補充熱交換器和主要電氣設備。

As it relates to technology development, in the fourth quarter, we signed our strategic supplier agreement with Lummus Technology, which designates Lummus as lever cooperative heat exchanger supplier for NET power utility scale plants. I will touch more on this agreement and have significant implications for NET Power in a few slides.

由於涉及技術開發，第四季度我們與Lummus Technology簽署了戰略供應商協議，指定Lummus為NET電力公用事業規模工廠的槓桿合作熱交換器供應商。我將在幾張投影片中詳細介紹該協議，並對 NET Power 產生重大影響。

This year, we will develop our initial standard plant process design package, a key licensing deliverable that supports future project feed in a manner that maximizes standardization and drives down plant capital cost. We also intend to secure a long-term strategic supplier agreement with our identified ASU. provider, which we view as one of the most important next steps in standing up our long-term supply pain for the major LICENSE components of our cycle.

今年，我們將開發初始標準工廠製程設計包，這是一項關鍵的許可交付成果，以最大限度地提高標準化並降低工廠資本成本的方式來支持未來的專案。我們也打算與我們確定的 ASU 簽訂長期策略供應商協議。我們認為這是解決我們週期中主要許可組件長期供應難題的最重要的後續步驟之一。

On slide 9, the validation can testing from 2018 to 2022 was primarily focused on proving our proprietary oxy combustion supercritical CO2 cycle. This upcoming testing will primarily focus on validating and derisking the Baker Hughes utility scale turbo expander and how to optimize its operation within our cycle. The ultimate purpose of the demonstration plant and demonstrator campaign is to simulate the nearest conditions possible that the utility scale turbo expander.

在投影片 9 上，2018 年至 2022 年的驗證罐測試主要集中在證明我們專有的氧燃燒超臨界二氧化碳循環。即將進行的測試將主要集中在驗證貝克休斯公用事業規模渦輪膨脹機並消除其風險，以及如何在我們的周期內優化其運行。示範工廠和示範活動的最終目的是盡可能模擬公用事業規模渦輪膨脹機的最接近條件。

We'll see it project Permian. Therefore, the demonstrator turbo expander design architecture, technology and material selections all seek to replicate as closely as possible. The behavior and environment of the utility-scale turbo expander equipment validation will follow four primary phases, and we'll continue through 2026.

我們將看到它的二疊紀項目。因此，示範渦輪膨脹機的設計架構、技術和材料選擇都力求盡可能複製。公用事業規模透平膨脹機設備驗證的行為和環境將遵循四個主要階段，並將持續到 2026 年。

The first phase of testing at report focuses on the turbo expanders burner, which is where combustion of natural gas and oxygen take place in a CO2 environment. We will test multiple oxy-fuel burner configurations and Baker will select the best burner heading into the next phase.

報告的第一階段測試重點是渦輪膨脹機燃燒器，這是天然氣和氧氣在二氧化碳環境中燃燒的地方。我們將測試多種氧燃料燃燒器配置，貝克將選擇進入下一階段的最佳燃燒器。

The second phase of testing will take the down-selected oxy-fuel burner from Phase one and tested alongside with the combustor liner and other hardware to form a single demonstrator size combustor can the combustor cans purpose is to deliver the high pressure and high temperature mixture of CO2 and water to power the expander. This testing will allow us to optimize the combustion and full report demonstration conditions.

第二階段的測試將採用第一階段中選定的氧燃料燃燒器，並與燃燒器襯裡和其他硬體一起進行測試，以形成單一演示器尺寸的燃燒器罐，燃燒器罐的目的是輸送高壓和高溫混合物二氧化碳和水為膨脹機提供動力。該測試將使我們能夠優化燃燒和完整報告演示條件。

The third phase of testing will involve scaling the demonstrator size combustor can from Phase two to to a utility scale can with clusters of burners and then testing it with a goal of learning and to optimize the design of the utility-scale combustor that operated project Permian, the fourth and final phase will test the full demonstrator turbo expander, including the validation of materials and design architecture used on the turbo expander for project Permian Baker Hughes and that power will use this testing to tune our analytic and performance simulation models.

第三階段的測試將涉及將演示尺寸燃燒器從第二階段擴大到具有燃燒器集群的公用事業規模燃燒器，然後進行測試，目的是學習和優化運營二疊紀項目的公用事業規模燃燒器的設計第四階段也是最後階段將測試完整的演示渦輪膨脹機，包括驗證二疊紀貝克休斯專案渦輪膨脹機上使用的材料和設計架構，並且該動力將使用此測試來調整我們的分析和性能模擬模型。

With the acquired test data, we will confirm the demonstrator turbo expander and overall cycle operability and dynamic capability. All of this will allow us to confirm the overall demonstration plant cycle design and plant control system integrated with the Baker Hughes equipment, ensuring that we can minimize residual first-of-a-kind risk prior to the project Permian initial operations.

透過獲得的測試數據，我們將確認演示渦輪膨脹機以及整體循環可操作性和動態能力。所有這些將使我們能夠確認與貝克休斯設備整合的整體示範工廠循環設計和工廠控制系統，確保我們能夠在二疊紀專案初始運作之前最大限度地減少殘留的首次風險。

Turning to slide 10, our strategic supplier agreements signed with Lummus marks a significant achievement for the continued development of the net power cycle. As I mentioned before, Lummus is the designated recuperated heat exchanger supplier for that power. Not only do they have an extensive track record of delivering heat exchangers globally but their 110 plus years of experience in licensing technologies for numerous process industries makes them the ideal partner for Natpara.

轉向幻燈片 10，我們與 Lummus 簽署的策略供應商協議標誌著淨動力循環持續發展的重大成就。正如我之前提到的，Lummus 是該電力的指定回熱式熱交換器供應商。他們不僅在全球範圍內提供熱交換器方面擁有豐富的業績記錄，而且在眾多加工行業的許可技術方面擁有 110 多年的經驗，這使他們成為 Natpara 的理想合作夥伴。

Lummus has a long history of supporting that power technology with an unmatched understanding of the NET Power heat exchanger requirements. As a system integrator, Lummus will leverage its best-in-class global supply chain and heat exchanger component manufacturers to design and manufacture the most optimal performing and lowest total cost recuperated heat exchanger network for our cycle. They will also be proactively ramping up their capacity to meet future demand for their power plants.

Lummus 在支援此電力技術方面有著悠久的歷史，並且對 NET Power 熱交換器的要求有著無與倫比的理解。作為系統整合商，Lummus 將利用其一流的全球供應鏈和熱交換器組件製造商，為我們的循環設計和製造性能最佳、總成本最低的回收熱交換器網路。他們也將積極提高產能，以滿足未來發電廠的需求。

This partnership further expands our competitive and IP modes that power will own all cycle process and controls. Ip developed and less can only sell this proprietary recuperated heat exchanger to net our licensees. Natpara will also benefit from receiving licensing revenue on bonuses, future sales into net power plants, as is customary for specialty licensed equipment in the process industry. This agreement is a fantastic partnership for us, and we're excited to work with Leon and his team at Lummus.

這種合作關係進一步擴大了我們的競爭和智慧財產權模式，動力將擁有所有循環過程和控制。知識產權開發較少，只能將這種專有的回熱式熱交換器出售給我們的被授權人。 Natpara 也將受益於獲得獎金許可收入、未來對淨發電廠的銷售，這是流程工業中特種許可設備的慣例。這項協議對我們來說是一次極好的合作夥伴關係，我們很高興能與 Leon 及其 Lummus 團隊合作。

Slide 11 provides an all-encompassing view of our strategic supply chain partnerships that have been formed for the main components of our cycle. As previously mentioned, we have initiated engineering work with our selected air separation unit provider for project Permian, who will look to form a long-term strategic supplier partnership with them this year and announce more details at that time.

投影片 11 全面介紹了我們為循環的主要組成部分而建立的策略供應鏈合作夥伴關係。如前所述，我們已經與二疊紀專案選定的空氣分離裝置供應商啟動了工程工作，他們將尋求今年與他們建立長期戰略供應商合作夥伴關係，並屆時宣布更多細節。

Another area of focus this year will be establishing our control systems parts as we evaluate each supplier partnership. We look for win-win opportunities to leverage our partners' most advanced technologies and to further enhance our competitive position and IP moat. So far, we have been able to find best-in-class partners that are aligned with our vision for delivering clean, affordable and reliable energy and importantly, to do so at manufacturing scale.

今年的另一個重點領域是在評估每個供應商合作夥伴關係時建立我們的控制系統零件。我們尋求雙贏的機會，利用合作夥伴最先進的技術，進一步增強我們的競爭地位和智慧財產權護城河。到目前為止，我們已經能夠找到與我們提供清潔、負擔得起和可靠的能源的願景相一致的一流合作夥伴，更重要的是，能夠在製造規模上實現這一目標。

With that, I'll pass it off to Akash for the financial update.

這樣，我會將其傳遞給 Akash 以獲取最新財務資訊。

Thanks, Brian's. Turning to Slide 13. Net power ended the fourth quarter of 2023 with a strong balance sheet, including approximately $637 million of cash and short-term investments. For the quarter, our total capital expenditures were approximately $8 million, comprised of approximately $5 million capitalized costs associated with the ongoing project Permian development activities and approximately $3 million spent at report on modifications and upgrades ahead of testing, which is expected to begin this year.

謝謝，布萊恩的。轉向投影片 13。截至 2023 年第四季度，Net power 的資產負債表強勁，包括約 6.37 億美元的現金和短期投資。本季度，我們的總資本支出約為800 萬美元，其中包括與正在進行的二疊紀項目開發活動相關的約500 萬美元資本成本，以及預計今年開始的測試前修改和升級報告花費的約300萬美元。

And with the current interest rate environment, we continue to benefit from putting our balance sheet cash to work to materially offset our corporate spend in the fourth quarter, our cash flow used in operations was approximately $3 million. As mentioned last quarter, we expect cash flow used in operations to continue increasing as we build out our organization, progressive joint development program with Baker Hughes and ramp up activity and support.

在當前的利率環境下，我們繼續受益於利用資產負債表現金來實質抵消第四季度的公司支出，我們用於營運的現金流量約為 300 萬美元。正如上季度所提到的，隨著我們建立我們的組織、與貝克休斯的漸進式聯合開發計劃以及增加活動和支持，我們預計營運中使用的現金流將繼續增加。

Moving to the right side of slide 13, we show an illustrative use of existing capital through the end of 2027 when we expect initial power generation for our first utility-scale projects. Of the approximately $637 million on balance sheet, we expect your marketing approximately $200 million for our equity contribution to project Permian, approximate $175 million for the CapEx and OpEx outlook quarter, as well as the Baker Hughes joint development agreement and approximately $265 million towards corporate G&A origination work and other expenditures net.

轉到投影片 13 的右側，我們展示了到 2027 年底現有資本的說明性使用情況，屆時我們預計第一個公用事業規模專案將實現初始發電。在資產負債表上的約6.37 億美元中，我們預計您的行銷費用約為2 億美元用於我們對二疊紀專案的股權貢獻，約1.75 億美元用於資本支出和營運支出展望季度以及貝克休斯聯合開發協議，約2.65 億美元用於企業G&A 發起工作和其他支出淨額。

Our fully diluted share count was approximately $247 million shares as of December 31, 2023. This was comprised of approximately 212 million. Class A. and Class B vested shares currently outstanding, 19.5 million shares issuable upon the exercise of outstanding public and private warrants, which were given apparent additional $225 million in cash, 1.6 million shares subject to earnouts or vesting requirements and approximately 14 million authorized shares issuable pursuant to the joint development agreement with Baker Hughes. For a detailed breakdown of our diluted share count, please refer to Note 10 and 11 of our 10-K. That concludes our prepared remarks. I'll now pass it back to the operator to open it up the line for Q&A.

截至 2023 年 12 月 31 日，我們完全稀釋後的股票數量約為 2.47 億美元。其中約 2.12 億股。目前已發行的A 類和B 類既定股份，在行使未償還的公開和私人認股權證時可發行1,950 萬股，這些認股權證表面上額外獲得2.25 億美元現金，160 萬股受盈利或歸屬要求約束，以及約1,400 萬股授權股根據與貝克休斯的聯合開發協議發行。有關我們稀釋後股份數量的詳細細目，請參閱我們的 10-K 附註 10 和 11。我們準備好的演講到此結束。現在，我會將其傳回給操作員，以打開線路進行問答。

(Operator Instructions) Noel Parks, Tuohy Brothers.

（操作員說明）Noel Parks，Tuohy Brothers。

Hi, good morning. It just had a remodel of a couple of Wonder, right run by you when you were talking about different phases of testing. I think in the fourth one, there was a mention of them. We are with the turbo expander that you'll use that process too, sort of confirm your analytics that you and Baker Hughes will be using. Just wondering when you talk about analytics for that, that does stage of evaluation. Are those proprietary metrics you are going to have to build or are they just more sort of standardized benchmark tubulars?

早安.它只是對幾個 Wonder 進行了改造，當你談論不同的測試階段時，就由你來執行。我想在第四篇中，提到了他們。我們使用渦輪膨脹機，您也將使用該過程，以確認您和貝克休斯將使用的分析。只是想知道當你談論分析時，這確實是評估階段。這些專有指標是您必須建造的，還是只是更多標準化基準管材？

Yes, no, this is this is Danny. So the so the question is really around like the configuration and the design of the components. Is that right?

是的，不，這是丹尼。所以問題其實是圍繞著組件的配置和設計展開的。是對的嗎？

Yes, yes, yes. No, there isn't a need. There is a custom-built Baker component, but I'm going to turn it over to Brian to give you some of the technical details of the components.

對對對。不，沒有必要。有一個定制的 Baker 組件，但我將把它交給 Brian 來為您提供該組件的一些技術細節。

Sure. Yes. Thanks, Dan. Yes, no. So the analytical tools definitely are proprietary to to ourselves in the cycle design and to Baker and their various toolsets on how they design compressors, expanders, turbines, et cetera, and so with any model or any simulation, right, you're making some assumptions. So just as a typical engineering, good practice, as you get data, you always go back to your analytics and simulations and verify them more update on.

當然。是的。謝謝，丹。是的，不是。因此，分析工具絕對是我們自己在循環設計中專有的，也是貝克和他們關於如何設計壓縮機、膨脹機、渦輪機等的各種工具集專有的，所以對於任何模型或任何模擬，對吧，你正在做一些假設。因此，就像典型的工程、良好實踐一樣，當您獲取資料時，您總是會回到分析和模擬並驗證它們的更多更新。

Great. Thanks for the clarification. And from and as you one, you've talked a good bit about TM. It started out in securing the supply chain and done. I was also thinking about with the Lummus relationship. Is it I wouldn't expect you necessarily to get into into details, but the Lummus have incentives for adhering to your schedule or timetable. I'm just curious if you could just generally characterize what those would be like just to answer your your ability to manage that.

偉大的。感謝您的澄清。作為您的一員，您已經談論了很多有關 TM 的內容。它從保護供應鏈開始並完成。我也在考慮與魯姆斯的關係。我不希望您一定要詳細說明，但 Lummus 有動機遵守您的日程或時間表。我只是好奇你是否能概括地描述一下這些會是什麼樣子，以回答你的管理能力。

Sure. Yes. I can take that then? Yes, they absolutely do. I mean, the strategic supply agreement really aligns our incentives together. There's a incentive for them to pursue a cost-down reduction program with us. There's incentives to build out the capacity required to ramp up into manufacturing mode.

當然。是的。那我可以接受嗎？是的，他們絕對這樣做。我的意思是，戰略供應協議確實將我們的激勵措施結合在一起。他們有動力與我們一起實施降低成本的計劃。有激勵措施來建立進入製造模式所需的產能。

There's incentives for standardized. So it really aligns with our three pillars, which any supply agreement. That's really what we're trying to do is not optimize just for one order project Permian, but to build out really alignment through all three pillars with these partners.

有標準化的激勵措施。因此，它確實符合我們的三大支柱，即任何供應協議。我們真正想做的不僅僅是針對 Permian 訂單項目進行最佳化，而是透過所有三個支柱與這些合作夥伴建立真正的一致性。

Great. Jeff, I was wondering, thanks thank you.

偉大的。傑夫，我想知道，謝謝，謝謝。

Thomas Meric, Janney Montgomery Scott.

湯瑪斯·梅里克，珍妮·蒙哥馬利·史考特。

Good morning, everyone. Dan, you mentioned the power plants as an option for data center power, and I'm curious about unpacking that a little bit more mainly just curious on how you think for how we should think about the challenges and the opportunities for this kind of power offtake, specifically with respect to CO2 infrastructure build-out and is sequestration opportunities?

大家，早安。丹，您提到發電廠作為資料中心電力的一種選擇，我很好奇將其拆解，主要是想知道您如何思考我們應該如何考慮這種電力的挑戰和機遇承購，特別是在二氧化碳基礎設施建設方面，是封存機會嗎？

Yes. No, certainly. I mean, it like I mentioned in the prepared remarks, I mean, putting putting these plants in the right location is the first piece. And so and again, it starts with the geology. It starts with mapping it out, I think come in when when most people think of data centers and hyperscale data centers, they big, they only really think of data center alley in Virginia and just because that's where the largest concentration is.

是的。不，當然。我的意思是，就像我在準備好的評論中提到的那樣，我的意思是，將這些植物放在正確的位置是第一步。一次又一次，它從地質學開始。首先是繪製出來，我認為當大多數人想到資料中心和超大規模資料中心時，他們很大，他們只真正想到維吉尼亞州的資料中心胡同，只是因為那是最集中的地方。

But if you look at just across the United States broadly and I mean data centers everywhere. There's more data centers, I think, in Texas at this point in there on that West Virginia, DC metroplex area. And the reason for that is that's where population trends are going. That's where data demand for AI in protons are going from.

但如果你放眼整個美國，我指的是各地的資料中心。我認為，德州目前在西維吉尼亞州、華盛頓特區的大都市地區有更多的資料中心。原因是這就是人口趨勢的發展方向。這就是質子人工智慧的數據需求的來源。

And so when you actually start to map all this stuff out and you map out where is their data center demand for future deployments and whether it's natural gas infrastructure on getting access to that gas. And you map out just the subsurface piece, it really starts to eliminate them some really interesting areas that they think and most people I'm totally appreciative like the northern myself region from Illinois, Indiana, Ohio and Kentucky at West Virginia, the White Queen West Virginia become data center early version 2.0 with even lower cost natural gas and lower cost power.

因此，當您真正開始繪製所有這些內容時，您會繪製出他們的資料中心對未來部署的需求在哪裡，以及是否需要天然氣基礎設施來獲取該天然氣。你只繪製出地下部分，它真的開始消除他們一些他們認為非常有趣的區域，大多數人我都非常感激，例如來自伊利諾伊州、印第安納州、俄亥俄州和肯塔基州的西弗吉尼亞州的北部地區，白皇后西維吉尼亞州成為資料中心早期版本 2.0，天然氣成本和電力成本更低。

That's lower carbon intensity than what's in Virginia right now. If you could put in that power there. And so these are all like sort of like paradigm-shifting opportunities where it really opens up the landscape, but where you can start to establish even lower carbon intensity, lower costing power for these data centers.

這比維吉尼亞州現在的碳強度要低。如果你能在那裡投入這種力量。因此，這些都像是範式轉移的機會，它確實打開了前景，但您可以開始為這些資料中心建立更低的碳強度和更低的成本能力。

And it just so happens that, you know, the design that the team wanted to bring to market in terms of the size of this power plant, the first utility scale one, it really, really correlates fairly well with the power load and for these data center.

碰巧的是，您知道，團隊希望根據該發電廠的規模推向市場的設計，這是第一個公用事業規模的發電廠，它確實與電力負載相關性相當好，對於這些數據中心。

So we think it's going to be a really good management, having conversations with a lot of the big tech guys that have been going on over the course of the last few years in early stages. And but I think I'm just like why we thought it was so important to putting that power in the public spotlight and for the utility potential customers, it's to ensure that they understand this pathway that NET Power creates before they commit to a much higher cost, much less reliable option.

因此，我們認為這將是一個非常好的管理層，在過去幾年的早期階段與許多大型科技公司進行了對話。但我想我就像為什麼我們認為將這種電力置於公眾的聚光燈下如此重要，對於公用事業的潛在客戶來說，這是為了確保他們在承諾更高的目標之前了解NET Power 創建的這條途徑。成本，更不可靠的選擇。

And so we're designing this plant for reliability. We're designing this plant for affordability and inherent to that cycle is 100%, almost hundred percent capture of that CO2. So we think from just a responsibility and sustainability perspective and net-net, power is going to we think we are the top choice for a lot of this potential application.

因此，我們在設計該工廠時注重可靠性。我們設計該工廠的目的是為了經濟實惠，而該循環固有的特點是 100%、幾乎百分之百捕獲二氧化碳。因此，我們認為，從責任和永續性的角度來看，電力將成為許多這種潛在應用的首選。

Thanks. That's super helpful, Brian. On the strategic partners, he went into good detail on Lummus and the heat exchanger So I won't ask for any more from that. But how do you think about that in terms of a control system partner? And just what should I do are investors look for the next couple of quarters?

謝謝。這非常有幫助，布萊恩。關於策略夥伴，他詳細介紹了 Lummus 和熱交換器，所以我不會再要求更多。但對於控制系統夥伴，您如何看待這一點？投資者在接下來的幾個季度中應該做什麼？

Sure. Well, on that when it's not, it is really critical, but it's not a long lead at similar to, let's say, the heat exchanger Turbomachinery so we have a little time to get this right. But what we'll look for is, again, a partner aligned with our three pillar strategy.

當然。好吧，如果不是的話，這確實很關鍵，但它在類似於熱交換器渦輪機械方面的領先優勢並不長，所以我們有一點時間來解決這個問題。但我們將再次尋找符合我們三大支柱策略的合作夥伴。

And if you think about the net power process. You know, what we're really doing is bringing together best-in-class combination of equipment that all have to work together in unison. So really the control system called the code on how you operate.

如果你考慮一下淨功率過程。您知道，我們真正要做的是將一流的設備組合在一起，所有設備都必須協同工作。所以實際上控制系統調用了關於你如何操作的程式碼。

This plant is really some of our key technology development and IP, and we develop that report on, but it will be modified and enhanced as we go to project Permian. So we'll be looking for a partner similar to the others that we can have repeatable scale. And with that respect, our IP that wants to grow with us and we'll focus on cost reduction programs or all the key elements that we want to embed in the other parts.

這個工廠確實是我們的一些關鍵技術開發和智慧財產權，我們開發了該報告，但隨著我們進入二疊紀項目，它將被修改和增強。因此，我們將尋找與其他公司類似的合作夥伴，我們可以擁有可重複的規模。在這方面，我們的智慧財產權希望與我們一起成長，我們將專注於成本削減計劃或我們希望嵌入其他部分的所有關鍵要素。

Sure. Perfect. That's it for me. Thank you.

當然。完美的。對我來說就是這樣。謝謝。

Wade Suki, Capital One.

韋德·蘇基，《第一資本》。

Good morning, everyone. Thanks for taking my question. Just wondering if you might be able to give us a little more detail or color to the extent you feel comfortable on the commercial pipeline at geography debate? I hate to put you geographies or type of customers any additional color would be great if you don't mind.

大家，早安。感謝您提出我的問題。只是想知道您是否能為我們提供更多細節或顏色，讓您對地理辯論中的商業管道感到滿意？我不想告訴你地理位置或客戶類型，如果你不介意的話，任何額外的顏色都會很棒。

Yes, Wade, I think I'm as we kind of said in the opening remarks, the primary application for NET Power is power to the grid to get permanently sequestered in the geology. And that right now is the biggest market for us. And a lot of it happened to be in a lot of just the regulated power markets, myself, PJM, Ercot, Cato on Alberta, the Middle East and into that.

是的，韋德，我想正如我們在開場白中所說的那樣，NET Power 的主要應用是向電網提供電力，以永久隔離在地質中。現在這對我們來說是最大的市場。其中許多恰好發生在許多受監管的電力市場中，我自己、PJM、Ercot、Cato 在阿爾伯塔省、中東等地區。

That's obviously the primary market that we're really where we're focusing a lot of the origination efforts that are starting to see just a lot of inbounds. And I think that's really just because that's where the geology is very conducive to sequestering the CO2 where it's been proven.

這顯然是我們真正關注的主要市場，我們正在集中大量的原始工作，這些工作開始看到大量的入境。我認為這實際上只是因為那裡的地質條件非常有利於封存二氧化碳，這一點已經得到證實。

I mean that sequestration piece is not just the entirety of the environmental proposition of that power plant put in places like the US where you get that 45Q. It's a huge, huge part of the economic proposition to in and in some of those places, you can actually make more money on sequestering the CO2 than you do on generating 24/7 clean power. And so the can those conversations continue to pick up.

我的意思是，封存部分不僅僅是美國等地的 45Q 發電廠的環境主張的全部。這是經濟主張的一個巨大的組成部分，在其中一些地方，您實際上可以透過封存二氧化碳賺到比發電 24/7 清潔電力更多的錢。因此，這些對話可以繼續進行。

I would say like the one, the one thing that has been surprising is, I think, on a lot of a lot of countries, a lot of companies have come out and commit to these net zero ambitions without really doing the calculus to figure out what is that pathway to actually get there.

我想說的是，我認為令人驚訝的一件事是，在很多很多國家，很多公司已經站出來並致力於實現這些淨零雄心，而沒有真正進行計算來弄清楚真正到達那裡的途徑是什麼？

And so we're starting to have more and more conversations with potential customers who are who are coming to us saying we've done the math and it just doesn't pencil out of trying to get there with just renewables alone. It doesn't pencil out with some of these other options without causing a doubling or tripling of the power prices that I would have to charge my customer, my customers, and that's just not tenable.

因此，我們開始與潛在客戶進行越來越多的對話，這些客戶來找我們，說我們已經完成了計算，並且不會只依靠再生能源來實現這一目標。它不會在不導致我必須向我的客戶收取的電價增加一倍或三倍的情況下取消其中一些其他選項，這是站不住腳的。

People are saying assuming you guys can be able to scale up into manufacturing mode. So it's really good and feedback that we're getting from the market. And it's part of like the whole thesis of us taking that power public in the first place was eventually the market's going to come to this realization that there's no solutions out there. Second ensure affordable, reliable, clean power at the scale that the world needs.

人們說假設你們能夠擴大規模進入製造模式。所以我們從市場得到的回饋非常好。這就像我們首先將這種權力公開的整個論點的一部分，最終市場將認識到那裡沒有解決方案。其次，確保提供世界所需規模的負擔得起、可靠、清潔的電力。

And unfortunately, I think the world already committed to this lower carbon future without really having those solutions in hand to get them there in that pathway. And so that power is creating that passing into, I think as we think about how can we help our potential future customers? A lot of what project Permian allows us to do is start to bring strategic partners into project Permian to get their feet wet to get them up that learning curve on the net power plant so that they're comfortable to deploy it across their primary geographic territories.

不幸的是，我認為世界已經致力於實現低碳未來，但並沒有真正掌握這些解決方案來實現這一目標。因此，當我們思考如何幫助我們潛在的未來客戶時，我認為這種力量正在創造這種傳遞？二疊紀項目允許我們做的很多事情就是開始將戰略合作夥伴引入二疊紀項目，讓他們熟悉並掌握淨電廠的學習曲線，以便他們可以輕鬆地在其主要地理區域部署它。

Same with the origination strategy. The origination strategy across isn't because we wanted to become an independent power producer. We want to be able to create a pathway to bring in prospective future customers participate to operate in really learn the net power plants. They're super, super comfortable deploying across their primary areas also.

與起源策略相同。整個起源策略並不是因為我們想成為一個獨立的電力生產商。我們希望能夠創造一條途徑，吸引潛在的未來客戶參與營運真正了解網路的發電廠。他們在主要領域的部署也超級、超級舒服。

So as we really think about our commercial strategy, it's about creating pathways, take global license deployments in the 2030s and beyond. And so we're starting to have conversations with those customers that are interested in licenses, but they're really interested in being able to come into our early projects to really dip their toe in the water and really understand how to run these plants.

因此，當我們真正考慮我們的商業策略時，它是關於創建途徑，在 2030 年代及以後進行全球許可部署。因此，我們開始與那些對許可證感興趣的客戶進行對話，但他們真正感興趣的是能夠參與我們的早期項目，真正嘗試並真正了解如何運作這些工廠。

So the origination piece is just going to be a catalyst to those long term license opportunities. And so we're seeing it both in the US. We're seeing it across the world and I think come with things like data centers, you're starting to see entirely new markets pop up load for power demand, both here in the United States and other parts.

因此，原創作品將成為這些長期授權機會的催化劑。所以我們在美國都看到了這種情況。我們在世界各地都看到了這種情況，我認為隨著資料中心之類的事情的出現，你開始看到全新的電力需求市場突然出現，無論是在美國還是其他地區。

Well, fantastic. Thank you. Not to put you on the spot here would your expectation be that many of you know, within a couple of years of project Permian coming online, we might have SN2 or OP2 coming online shortly. Thereafter or somewhere in that time line. Is that a fair way to think about it?

嗯，太棒了。謝謝。並不是讓你陷入困境，你的期望是，你們中的許多人都知道，在 Permian 項目上線的幾年內，我們可能很快就會有 SN2 或 OP2 上線。此後或該時間軸的某個地方。這是一個公平的思考方式嗎？

Yes, that's right. I think the way we're looking at all of these origination projects because we do have the benefit of time. And because the first time will be coming online mid '27, end of '27 beginning of '28, that range there, we're really figuring out now, where do we want to send to to be the second utility scale plants. So with OP., that project that we announced, we'll be in the major regions are going to be filing our interconnect application there.

恩，那就對了。我認為我們看待所有這些原創項目的方式是因為我們確實有時間的優勢。因為第一次將在 27 年中期、27 年底、28 年初上線，這個範圍在那裡，我們現在正在真正弄清楚，我們要發送到哪裡成為第二個公用事業規模的工廠。因此，透過我們宣布的 OP. 項目，我們將在主要地區提交我們的互連申請。

I think that might be a window opens on next week and will be open for 30 days. And so we'll get our interconnect application in there during that window. We're working on our plastics permits with our partner up there. And so we're going to be in a place where we're going to have all permits in hand to do power to the grid sequestration into the ground and well in advance of of that plant.

我認為這可能是下週打開的一個窗口，並將開放 30 天。因此，我們將在該視窗期間獲得互連應用程式。我們正在與我們的合作夥伴一起研究塑膠許可證。因此，我們將擁有所有許可證，可以在該工廠之前將電網電力封存到地下。

If we said we wanted to be s And two, it's going to be in a position to be to be us into. I think the determination of if it is us into our process and three are US and four is really a function of other other really economic more strategic projects that could leapfrog and become a to.

如果我們說我們想成為 s 和 2，那麼它就會成為我們的位置。我認為，確定是否是我們參與我們的進程，三個是美國，四個是其他真正經濟更具戰略性的項目的功能，這些項目可能會跨越並成為一個目標。

So what are you really going to be seeing from us doing over the next few years with origination, but also with license opportunities and just continuing to build up the backlog of projects and we'll be able to slot them according to their importance as to the net power strategy into the long-term proposition for the shareholders.

那麼，在接下來的幾年裡，您真正會從我們身上看到什麼，除了原創之外，還有許可機會，以及繼續積累項目積壓，我們將能夠根據它們的重要性來安排它們將淨實力策略納入股東的長期主張。

Fantastic. Thank you so much. Appreciate it.

極好的。太感謝了。欣賞它。

Thanks, Wade.

謝謝，韋德。

Betty Jiang, Barclays.

蔣貝蒂，巴克萊銀行。

Morning. I have a question for Brian, just wondering if you could provide a bit more color around how you think about the risk profile for each of the validation phases and report on slide 9, I'm just trying to understand basically is phase one and two, just testing the equipment designed by Baker and like what are the most important pieces that needs to get derisked? And then also once you've proven the operations at the demonstration scale is relatively less risky to scale it up to utility scale? Thanks. Sure.

早晨。我有一個問題想問Brian，只是想知道您是否可以提供更多關於您如何看待每個驗證階段的風險狀況以及幻燈片9 上的報告的信息，我只是想了解基本上是第一階段和第二階段，只是測試貝克設計的設備，以及需要消除風險最重要的部分是什麼？然後，一旦您證明示範規模的營運風險相對較小，您就可以將其擴大到公用事業規模？謝謝。當然。

Thanks for the question. So that the phases are sequenced in order with each phase of testing validating and retiring key technical risks, which are shown on the slide. So in this way, there's no specific tests that, let's say that's the highest risk, but they're building upon each other.

謝謝你的提問。因此，這些階段按順序排列，每個階段的測試都會驗證和消除關鍵技術風險，如幻燈片所示。因此，透過這種方式，沒有特定的測試，可以說這是最高的風險，但它們是相互基礎的。

So they're all important, I guess, to say that a reminder that we're developing the utility scale for Bakers, developing utility scale, turbo expander in parallel. So really this is about validation. And yes, both happening completely in parallel.

所以我想它們都很重要，提醒我們正在為貝克斯開發公用事業規模，同時開發公用事業規模和渦輪膨脹機。所以這實際上是關於驗證。是的，兩者完全並行發生。

I don't know if I answered your question fully, but I would say that the all the phases are important. They all build on each other. Each one, retire certain risks or certain results that Baker is looking to see. It's one builds in order from there.

我不知道我是否完全回答了你的問題，但我想說所有階段都很重要。它們都是相互依存的。每一項都消除了貝克希望看到的某些風險或某些結果。這是從那裡開始按順序構建的。

Got it so the demonstration equipment is actually what's currently on the plant right now.

明白了，演示設備其實就是工廠目前的設備。

So the plant the plant was built existed there. We are making modifications to it that are specific to the Baker Hughes, a turbo expander and the testing for the combustor. So Baker's equipment will be shipping in this year and over the in the future years to basically be placed where the prior turbo expander was located.

所以那個工廠蓋的工廠就在那裡。我們正在對其進行專門針對貝克休斯、渦輪膨脹機和燃燒室測試的修改。因此，貝克的設備將在今年和未來幾年內發貨，基本上放置在先前渦輪膨脹機所在的位置。

Got it. What the Baker turbo expander be arriving on-site and want to get connected to the plant?

知道了。貝克渦輪膨脹機抵達現場並想要連接到工廠嗎？

Yes, that will be in the 2026 timeframe. So between now and then we're doing the combustor testing, which is a major component of the turbo expander kind of again, what we're doing is really, yes, we're demonstrating the combustion system, both are demonstrate sites what happens in Phase two and the utility scale combustor size. So in essence, before we start project Permian, we will have already operated full utility size can report.

是的，那將是在 2026 年的時間範圍內。因此，從現在到那時，我們正在進行燃燒室測試，這是渦輪膨脹機的主要組成部分，我們所做的實際上是，是的，我們正在演示燃燒系統，兩者都是演示現場會發生什麼第二階段和公用事業規模燃燒室尺寸。因此，本質上，在我們啟動 Permian 專案之前，我們已經可以報告營運的完整公用事業規模。

Okay, got it. Understood. And a follow up on the licensing fee, just on the licensing fee that's related to Luminous. Is it incremental to the fees that you have originally laid out for the NET Power Cycle technology? And if so, just how material is it relatively?

好，知道了。明白了。關於許可費的後續，只是與 Luminous 相關的許可費。它是否會增加您最初為 NET Power Cycle 技術制定的費用？如果是這樣，它的相對重要性如何？

Yes, I can take that. Agents are Dash and yes, it is additive, right baking. As we said before, we're going to go through a pricing for each license. We sell breakbulk and be predicated upon plant economics, right? You see a plant that is turning 20%-plus returns. Once you come down the CapEx curve, we should be charging more for a license.

是的，我可以接受。代理是 Dash，是的，它是添加劑，正確的烘焙。正如我們之前所說，我們將對每個許可證進行定價。我們銷售散雜貨並以工廠經濟為基礎，對吧？您看到一家工廠的回報率超過 20%。一旦資本支出曲線下降，我們應該收取更多的許可證費用。

So it really is the the license fee for operating constructing and operating in a powerplant will be done done on an individual project by project basis. And as far as the lumpiness and any other equipment licensing fees, it's too early for us to go out and say what that number is going to be, but it is, but it is a fraction, I say, of like our plant licenses and it's really formulaic two to incentivize them to come down cost curve and share on the benefit of that.

因此，發電廠的營運建設和運營的許可費實際上將根據各個項目的具體情況來收取。至於塊狀和任何其他設備許可費用，我們現在出去說出這個數字是多少還為時過早，但它確實是，但我說，這只是我們工廠許可證和這確實是公式化的兩者，以激勵他們降低成本曲線並分享由此帶來的好處。

So on Belo's early for us to say what that number is given we haven't placed an order yet for a third party heat exchangers, but there is a formulaic way of us approaching what that equipment licensing fee will be.

因此，在貝洛，我們很早就可以說出這個數字是多少，我們還沒有為第三方熱交換器下訂單，但我們有一個公式化的方法來計算設備許可費用。

Got it. Now that's clear Thanks for the color. Thank you.

知道了。現在很清楚了，謝謝你的顏色。謝謝。

Thank you. At this time we've reached the end of our question-and-answer session, and I'll turn the floor back to Daniel Rice for closing remarks.

謝謝。現在，我們的問答環節已經結束，我將請丹尼爾·賴斯 (Daniel Rice) 致閉幕詞。

Thanks, everybody for for joining us today. I'm really excited to share this update with you share the key 2024 milestones really in the foreground for the next few years. We're really focused on steady progress through COG on serial number one, which continues to schedule.

謝謝大家今天加入我們。我很高興與您分享此更新，分享未來幾年真正處於前台的 2024 年關鍵里程碑。我們真正專注於透過 COG 穩步推進序號 1，該序列仍在計劃中。

And really, as we talked about in the prepared remarks and some of the Q&A in the background, we're seeing significant step changes in market sentiment and total addressable market that really set us up for long-term success. So it's critically important.

事實上，正如我們在準備好的發言和背景中的一些問答中談到的那樣，我們看到市場情緒和總目標市場發生了重大變化，這確實為我們的長期成功奠定了基礎。所以這非常重要。

We do it right with serial number one in doing so really unlocks what we think is going to be one of the largest, most valuable total addressable markets. It's really any any company in the world today. So a huge expectations for us, and this team is up to the challenge, and we are deeply appreciative of your support on this mission to deliver the energy trifecta Have a good day.

我們以第一號的正確做法，真正解鎖了我們認為將成為最大、最有價值的總可尋址市場之一。這實際上是當今世界上任何一家公司。因此，我們對我們抱有巨大的期望，這個團隊能夠迎接挑戰，我們非常感謝您對這項使命的支持，以實現能源三連勝，祝您有美好的一天。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation, and have a wonderful day.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與，祝您有美好的一天。