Rice Acquisition Corp. II (RAC II), a special purpose acquisition company (SPAC) led by current director of RAC II and former Rice Energy Inc. CEO Danny Rice, will merge with NET Power, whose technology is designed to reduce carbon emissions from natural gas, with a pro forma enterprise value of $1.459bn.

The SPAC deal is expected to close in the second quarter of 2023.

The merger is expected to provide NET Power with approximately $535mn in cash, including $225mn in PIPE commitments. Total committed investment of $235mn includes $100mn from the Rice Family, $100mn from Occidental Petroleum, $5mn each from 8 Rivers and Constellation Energy, and $25mn from other investors.

Net proceeds above $200 million are anticipated to advance and support commercialization, including funding its first utility-scale plant (SN1) in the Permian Basin, Texas, which is expected to be commissioned in 2026.

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

Rice will succeed Ron DeGregorio, current CEO of NET Power.

Pictured: NET Power demonstration facility in La Porte, Texas