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NFE will transfer UTE Portocem's contract to thermoelectric parks connected to the Barcarena and TGS LNG terminals, enabling the first commercial operation of thermoelectric energy.
The renewable energy company, New Fortress Energy (NFE), entered into an agreement to acquire the obligations and revenue of the capacity reserve of 1,6 GW from the Portocem Thermoelectric Plant (UTE Portocem), a subsidiary of Ceiba Energy. In exchange, NFE will deliver convertible preferred shares.
O agreement fifteen-year period includes an annual payment of US$280 million to New Fortress Energy (NFE) and was won by UTE Portocem in the 1st Power Capacity Reserve Auction promoted by Aneel in 2021. The transaction is subject to regulatory agency approval before being concluded.
Acquisition of Capacity Reserve Agreement by New Fortress Energy
New Fortress Energy (NFE) is awaiting completion of the transaction by March 2024, with cash flows from the project scheduled to begin in July 2026 at the latest.
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The company's proposal is to transfer the contract to the renewable energy assets connected to the Liquefied Natural Gas (LNG) terminals that the company has in Brazil: Barcarena, in Pará, and Terminal Gas Sul (TGS), in Santa Catarina, both with forecast of first commercial operation until the beginning of 2024.
Expansion of New Fortress Energy in Brazil
‘We are extremely pleased to expand our operations in Brazil and consolidate NFE’s position as the main supplier of clean energy and reliable for one of the fastest growing economies in the world,' said Wes Edens, president and CEO of the company.
With a 1,6 GW project, UTE Portocem represents an investment by Ceiba Energy of approximately R$4,7 billion, currently in construction phase in the Ceará Export Processing Zone (ZPE Ceará), in the Pecém Industrial and Port Complex (CIPP).
New Fortress Energy Strategic Planning
NFE's strategy is to expand its energy complex by 1,2 GW in Barcarena by 2026, with the remaining 0,4 GW earmarked for power generation assets connected to the TGS. NFE's original 630 MW development at Barcarena remains on schedule for the third quarter of 2025.
The company expects to reduce costs and generate incremental revenue and gains at its terminals by utilizing its existing asset base.
Impact of the Acquisition of PPA Portocem by New Fortress Energy
‘With the acquisition of PPA Portocem, we have added a long-lived contracted asset that is highly complementary to our presence in Brazil. This aligns with our strategy of vertical integration and optimization of our assets in an effort to generate long-term shareholder value,' said Andrew Dete, Managing Director of NFE.
The TGS terminal aims to remedy part of the limitations in natural gas supply region, which includes more than 3 GW of industrial and power generation customers.
Source: EPBR
