10 Pump and Dump Stocks Favored by Hedge Funds

2. NET Power Inc. (NYSE:NPWR)

Number of Hedge Fund Holders: 25

NET Power Inc. (NYSE:NPWR) is an energy technology company developing a proprietary natural gas power generation system with near-zero emissions. Its technology utilizes an oxy-combustion process in a supercritical CO₂ cycle to produce low-cost, dispatchable power while capturing nearly all carbon emissions without additional carbon capture equipment. The company targets utilities, industrial power users, and energy developers, aiming to commercialize its system as a cleaner alternative to conventional fossil fuel power generation. NPWR generates value through technology licensing, project partnerships, and potential power sales, positioning itself in the transition to low-emission energy solutions.

NET Power Inc. (NYSE:NPWR) completed the front-end engineering and design (FEED) for Project Permian (SN1), marking a significant milestone for the world’s first utility-scale, fully integrated clean gas power plant of its kind. However, the company faced challenges due to inflationary pressures and market conditions, resulting in a revised total installed cost estimate of $1.7 billion to $2 billion for SN1, up from the initial estimate of $950 million. In response, NPWR has shifted focus to a post-FEED optimization and value engineering exercise to reduce costs while maintaining performance. The company is also exploring opportunities for modular multi-unit deployments along the Gulf Coast, which could demonstrate further cost reductions.

NET Power Inc. (NYSE:NPWR) continues to advance its technology validation program at the La Porte demonstration facility, having achieved over 140 fired hours of operation during Phase 1 testing. The company maintains a strong liquidity position with $533 million in cash, cash equivalents, and investments at the end of 2024. Looking ahead, management aims to position the company as the lowest-cost source of clean firm power in the coming decade, focusing on improving technology, optimizing plant designs, and attracting strategic partners to unlock the technology’s potential. The company is also exploring new opportunities, including an industrial-scale NET Power solution developed in collaboration with Baker Hughes and Woodside Energy. With high stock price volatility in the last 52 weeks and 25 hedge funds owning the stock, NPWR is one of the pump and dump stocks favored by hedge funds.