Press release
New Fortress Energy Adds 1.6 GW, 15-year Contracted Power Asset to Existing Brazilian Infrastructure Portfolio
Summary Highlights NFE to acquire 1.6 GW Capacity Reserve Contract (“PortoCem PPA” or “PPA”) in Brazil from CEIBA Energy, a portfolio company of Denham
About this update from New Fortress Energy Inc.
[{"type":"text","content":"\nSummary Highlights\n\n\n\nNFE to acquire 1.6 GW Capacity Reserve Contract (“PortoCem PPA” or “PPA”) in Brazil from CEIBA Energy, a portfolio company of Denham Capital, in exchange for NFE Convertible Preferred Stock\n\n\n\nNFE to transfer the PPA to power assets connected to NFE’s existing LNG terminals in Brazil\n\n\n\nPPA adds more than $280 million of annual fixed capacity payments under a 15-year contract\n\n\n\nPPA positions NFE as leading LNG-to-power company in Brazil, the largest economy in South America with a population of over 200 million people who use less than 1/5 the energy of a U.S. citizen\n\n\n\nAligns with NFE’s strategy of organic growth through existing LNG terminals, long-duration, contracted cash flows, and accretive infrastructure projects in existing geographies\n\n\n\n NEW YORK--(BUSINESS WIRE)--\nNew Fortress Energy Inc. (NASDAQ: NFE) (the “Company”) announced that it has entered into a definitive agreement to acquire a 1.6 GW Capacity Reserve Contract (“PortoCem PPA” or “PPA”) from Ceiba Energy, a portfolio company of Denham Capital, in exchange for newly issued NFE redeemable Series A Convertible Preferred Stock and the assumption of certain liabilities from a subsidiary of Ceiba Energy.\n\n\nFollowing customary closing conditions including regulatory approval for the transfer of the PPA in Brazil, the PPA will contribute firm capacity payments of $280 million per annum through its 15-year contract life. NFE expects the transaction to close in March 2024, with project cash flows expected to begin no later than July 2026.\n\n\nNFE plans to leverage its existing infrastructure in Brazil and transfer the PPA to new power assets connected to NFE’s existing Brazilian LNG terminals – Barcarena and Terminal Gas Sul (“TGS”). NFE intends to utilize its existing infrastructure in place in Barcarena to strategically expand its power complex by 1.2 GW, with an expected Commercial Operations Date (“COD”) for the expansion in 2026. NFE’s original 630 MW development in Barcarena remains on schedule for COD in the third quarter of 2025. NFE plans to transfer the remaining 0.4 GW of the PPA to another power generation asset that connects to its TGS terminal. By using its existing asset base, NFE expects to reduce costs and generate incremental throughput and earnings at its terminals.\n\n\nWith the acquisition of t...