NextDecade Corporation (NextDecade or the Company) (NASDAQ:
NEXT) announced today that it has agreed to sell $10 million of
Series C Convertible Preferred Stock (Series C Preferred Stock) in
a private placement to OGCI Climate Investments Holdings LLP (OGCI
Climate Investments).
OGCI Climate Investments is a fund set up by member companies of
the Oil and Gas Climate Initiative (OGCI) to catalyze low carbon
ecosystems and deliver carbon reduction. One of OGCI Climate
Investments’ areas of focus is the capture and storage of carbon
dioxide (CCS) in industrial processes including power generation.
The fund invests in projects and technologies that are economic and
implementable, helping to demonstrate the viability of a global CCS
industry.
Earlier this month, NextDecade announced its wholly owned
subsidiary, NEXT Carbon Solutions, is developing one of the largest
CCS projects in North America at Rio Grande LNG. NEXT Carbon
Solutions’ CCS project at Rio Grande LNG is expected to enable the
capture and permanent geologic storage of more than five million
tonnes of CO2 per year.
“We are pleased to welcome OGCI Climate Investments as a
NextDecade investor,” said Matt Schatzman, NextDecade’s Chairman
and Chief Executive Officer. “We share a vision of providing the
world access to cleaner energy. This capital will enable the
further advancement of NextDecade’s proprietary processes to lower
the cost of utilizing CCS technology and the realization of the
transformative and impactful contributions that we expect to make
to the global energy industry and the quest toward a net-zero
future.”
“Through its work at Rio Grande LNG, NextDecade demonstrates the
economic and operational viability of CCS to deliver carbon
reduction,” said Pratima Rangarajan, OGCI Climate Investments’
Chief Executive Officer. “We believe in NextDecade’s vision of
delivering the lowest end-to-end emission LNG possible from the
Permian and Eagle Ford basins.”
The offer and sale of the Series C Preferred Stock has not been,
and will not be, registered under the Securities Act of 1933
(Securities Act), or any other securities laws, and the Series C
Preferred Stock cannot be offered or sold except pursuant to an
exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and any other
applicable securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities, in any state or jurisdiction
in which such offer, solicitation or sale of these securities would
be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About NextDecade Corporation
NextDecade Corporation (NextDecade) is committed to providing
the world access to cleaner energy. NextDecade, through its wholly
owned subsidiaries Rio Grande LNG and NEXT Carbon Solutions, is
developing a 27 mtpa LNG export facility in South Texas along with
one of the largest carbon capture and storage projects in North
America. The Rio Grande LNG facility is expected to be the largest
and greenest U.S. LNG export solution linking Permian Basin and
Eagle Ford Shale natural gas to the global LNG market. NextDecade’s
common stock is listed on the Nasdaq Stock Market under the symbol
“NEXT.” NextDecade is headquartered in Houston, Texas. For more
information, visit www.next-decade.com.
About OGCI Climate Investments
OGCI Climate Investments is a $1B+ fund launched in 2016 by the
Oil and Gas Climate Initiative, a CEO-led initiative that
explicitly supports the Paris Agreement and aims to accelerate the
industry response to climate change. The initiative’s members
include Aramco, bp, Chevron, CNPC, Eni, Equinor, ExxonMobil,
Occidental, Petrobras, Repsol, Shell, and Total.
OGCI Climate Investments invests in technologies and projects
that reduce methane and carbon dioxide emissions, and that can
recycle or store carbon dioxide (carbon capture, utilization, and
storage). Achieving significant impact requires global
implementation and commercial frameworks – at OGCI Climate
Investments, we collaborate with innovators, investors, and
governments to fund and implement impactful solutions.
NextDecade Forward-Looking Information
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws including, in
particular, statements about the Company’s private placement of
Series C Preferred Stock and the use of proceeds thereof. The words
“anticipate,” “contemplate,” “estimate,” “expect,” “project,”
“plan,” “intend,” “believe,” “may,” “might,” “will,” “would,”
“could,” “should,” “can have,” “likely,” “continue,” “design” and
other words and terms of similar expressions are intended to
identify forward-looking statements, and these statements may
relate to the business of NextDecade and its subsidiaries. These
statements have been based on NextDecade’s current assumptions,
expectations, and projections about future events and trends and
involve a number of known and unknown risks, which may cause actual
results to differ materially from expectations expressed or implied
in the forward-looking statements. These risks include
uncertainties about progress in the development of NextDecade’s LNG
liquefaction and export projects and the timing of that progress;
NextDecade’s final investment decision (“FID”) in the construction
and operation of a LNG terminal at the Port of Brownsville in
southern Texas (the “Terminal”) and the timing of that decision;
the successful completion of the Terminal by third-party
contractors and an approximately 137-mile pipeline to supply gas to
the Terminal being developed by a third-party; NextDecade’s ability
to secure additional debt and equity financing in the future to
complete the Terminal; the accuracy of estimated costs for the
Terminal; statements that the Terminal, when completed, will have
certain characteristics, including amounts of liquefaction
capacities; the development risks, operational hazards, regulatory
approvals applicable to the Terminal’s and the third-party
pipeline's construction and operations activities; NextDecade’s
anticipated competitive advantage and technological innovation
which may render its anticipated competitive advantage obsolete;
the global demand for and price of natural gas (versus the price of
imported LNG); the availability of LNG vessels worldwide; changes
in legislation and regulations relating to the LNG industry,
including environmental laws and regulations that impose
significant compliance costs and liabilities; NextDecade’s ability
to develop and implement carbon capture and storage or similar
technology to reduce anticipated carbon emissions from the
Terminal; global pandemics including the 2019 novel coronavirus
pandemic and their impact on NextDecade’s business and operating
results, including any disruptions in NextDecade’s operations or
development of the Terminal and the health and safety of
NextDecade’s employees, and on NextDecade’s customers, the global
economy and the demand for LNG; risks related to doing business in
and having counterparties in foreign countries; NextDecade’s
ability to maintain the listing of its securities on a securities
exchange or quotation medium; changes adversely affecting the
business in which NextDecade is engaged; management of growth;
general economic conditions; NextDecade’s ability to generate cash;
compliance with environmental laws and regulations; the result of
future financing efforts and applications for customary tax
incentives; and other matters discussed in the “Risk Factors”
section of NextDecade’s Annual Report on Form 10-K for the year
ended December 31, 2020 and other subsequent reports filed with the
Securities and Exchange Commission, all of which are incorporated
herein by reference. Additionally, any development of the Terminal
remains contingent upon completing required commercial agreements,
acquiring all necessary permits and approval, securing all
financing commitments and potential tax incentives, achieving other
customary conditions and making a final investment decision to
proceed. The forward-looking statements in this press release speak
as of the date of this release. Although NextDecade believes that
the expectations reflected in these forward-looking statements are
reasonable, it can give no assurance that the expectations will
prove to be correct. NextDecade may from time to time voluntarily
update its prior forward-looking statements, however, it disclaims
any commitment to do so except as required by securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20210329005746/en/
Patrick Hughes phughes@next-decade.com +1 (832) 209 8131
OGCI@hkstrategies.com +44 (0) 7825 977265
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