New Fortress Energy Signs EPC Contract and Begins Construction of 1.6 GW Power Plant to Serve 15-Year Agreement in Brazil

Business Wire
April 17, 2024
By: Staff



In the news

NEW YORK--(BUSINESS WIRE)--Apr. 17, 2024-- 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.