New Fortress Energy Signs EPC Contract and Begins Construction of 1.6 GW Power Plant to Serve 15-Year Agreement in Brazil
April 17 2024 - 4:37PM
Business Wire
New Fortress Energy Inc. (NASDAQ: NFE) (“NFE” or the “Company”)
today announced that it has finalized and executed an engineering,
procurement and construction contract (the “EPC Contract”) with a
consortium formed by Mitsubishi Power Americas and Andrade
Gutierrez (the “MHI/AG Consortium”) for a 1.6 GW power plant to be
built adjacent to the Barcarena LNG terminal. NFE has also issued
full Notice to Proceed to the MHI/AG Consortium to begin
construction work under the contract. The power plant will provide
firm power capacity under the previously announced 15-year Capacity
Reserve Contract (“Agreement”) that NFE acquired from Denham
Capital and CEIBA Energy, which closed in March 2024.
Under the terms of the fixed-price, date-certain EPC Contract,
construction activities for the thermal power plant are already in
progress with commercial operations projected to commence no later
than August 2026. The power plant will operate under the 15-year
Agreement with the Brazilian Chamber of Electric Energy
Commercialization.
In Q1 2024, NFE completed construction and commissioning of both
the Barcarena and Santa Catarina “TGS” terminals. Along with the
existing 630 MW power plant and 25-year agreement, the Barcarena
LNG terminal will now host and supply LNG to more than 2,200 MWs of
power capacity owned by NFE, as well as supply natural gas to Norsk
Hydro’s Alunorte alumina refinery under a 15-year contract which
commenced in Q1 2024.
“We are very pleased to announce this EPC Contract and the start
of construction for our 1.6 GW power plant in Barcarena. We are
grateful to our partners at Mitsubishi Power and Andrade Gutierrez
for their swiftness and collaboration in placing this great project
into construction and we look forward to finalizing the work over
the next 24 months,” said Andrew Dete, Managing Director of New
Fortress Energy.
“This 1.6 GW power plant is a historic project for Brazil. It
will allow for an efficient energy transition and ensure the
reliability of the national electrical system. We are proud to
participate together with Andrade Gutierrez to design and construct
this important project to support NFE’s growth in Brazil,” said Tim
Shore, Senior Vice President of LATAM Commercial and Regional
Leader for Mitsubishi Power Americas.
About New Fortress Energy Inc.
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy
infrastructure company founded to address energy poverty and
accelerate the world’s transition to reliable, affordable, and
clean energy. The Company owns and operates natural gas and
liquefied natural gas (LNG) infrastructure and an integrated fleet
of ships and logistics assets to rapidly deliver turnkey energy
solutions to global markets. Collectively, the Company’s assets and
operations reinforce global energy security, enable economic
growth, enhance environmental stewardship and transform local
industries and communities around the world.
Cautionary Language Regarding Forward-Looking
Statements
This communication contains forward-looking statements. All
statements contained in this communication other than historical
information are forward-looking statements that involve known and
unknown risks and relate to future events, our future financial
performance or our projected business results. You can identify
these forward-looking statements by the use of forward-looking
words such as “expects,” “may,” “will,” “predicts,” “intends,”
“plans,” “estimates,” “anticipates,” or the negative version of
these terms or other comparable words. Forward looking statements
include but are not limited to: expectations related to the timing
for when our 1.6 GW power plant will commence operations and the
supply from the Barcarena LNG terminal.
These forward-looking statements are necessarily estimates based
upon current information and involve a number of risks,
uncertainties and other factors, many of which are outside of the
Company’s control. Actual results or events may differ materially
from the results anticipated in these forward-looking statements.
Specific factors that could cause actual results to differ from
those in the forward-looking statements include, but are not
limited to: failure to receive the expected fixed payments under
our contracts, unknown and unforeseen risks related to the
development, construction or commissioning schedule of the
Barcarena power complex, including failure to meet design and
engineering specifications, incompatibility of systems, delays and
schedule changes, high costs and expenses, and regulatory and legal
challenges, among others; failure to receive expected financing on
terms acceptable to NFE; receipt of permits, approvals and
authorizations from governmental and regulatory agencies on a
timely basis or at all; our inability to operationalize our plans
for the projects and derive the benefits expected; common risks
related to successful integration of the businesses; breach or
failure by the parties to comply with the covenants and obligations
under the agreements; nonpayment or nonperformance of obligations
by the parties; inability to realize the anticipated benefits from
the project or our partnerships; adverse regional, national, or
international economic conditions, adverse capital market
conditions and adverse political developments; business disruption
following the transaction; and the impact of public health crises,
such as pandemics and epidemics and any related company or
government policies and actions to protect the health and safety of
individuals or government policies or actions to maintain the
functioning of national or global economies and markets. These
factors are not necessarily all of the important factors that could
cause actual results to differ materially from those expressed in
any of NFE’s forward-looking statements. Other known or
unpredictable factors could also have material adverse effects on
future results.
Any forward-looking statement speaks only as of the date on
which it is made, and we undertake no duty to update or revise
these forward-looking statements, even though our situation may
change in the future. New factors emerge from time to time, and it
is not possible for the Company to predict all such factors. When
considering these forward-looking statements, you should keep in
mind the risk factors and other cautionary statements included in
NFE’s annual and quarterly reports filed with the Securities and
Exchange Commission, which could cause its actual results to differ
materially from those contained in any forward-looking
statement.
Source: New Fortress Energy Inc.
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version on businesswire.com: https://www.businesswire.com/news/home/20240417046636/en/
Investors Chance Pipitone ir@newfortressenergy.com
Media press@newfortressenergy.com
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