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New Fortress Energy acquires 1.6 GW capacity reserve PPA in Brazil
- 11 months ago (2023-12-28)
- David Flin
New Fortress Energy (NFE) has entered into an agreement to acquire a 1.6 GW capacity reserve contract PPA from Ceiba Energy in Brazil. The PPA will contribute firm capacity payments of $280 million per year 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.
EVision 2025
NFE plans to use its existing infrastructure in Brazil and transfer the PPA to new power assets connected to its existing Brazilian LNG terminals at Barcarena and Terminal Gas Sul (TGS). NFE will expand its power complex at Barcarena by 1.2 GW, with commercial operation scheduled for 2026. NFE plans to transfer the remaining 0.4 GW of the PPA to another new power asset connecting to its TGS terminal.
Wes Edens, Chairman and CEO of New Fortress Energy, said: “We are extremely pleased to expand our business in Brazil and cement NFE as a leading provider of clean, reliable energy to one of the fastest growing economies in the world. With today’s acquisition, we add a contracted, long-duration asset that is highly complementary to our Brazilian footprint. This aligns with our strategy to vertically integrate and optimise our assets in an effort to drive shareholder value over the long-term.”