NEW YORK--(BUSINESS WIRE)--Mar. 5, 2019--
New Fortress Energy LLC (NASDAQ: NFE) (“New Fortress”) announced today
that its Puerto Rico subsidiary, NFEnergía LLC (“NFEnergía”), has
entered into a contract with the Puerto Rico Electric Power Authority
(“PREPA”) for the supply of natural gas and conversion of Units 5 and 6
of the San Juan Combined Cycle Power Plant. The initial term of the
contract is five years, with options for PREPA to extend for three
additional five-year periods.
PREPA estimates that the conversion of these units from diesel to
natural gas will generate an estimated $750 million in fuel cost savings
over five years for PREPA and significantly reduce emissions.
“This is a very pivotal transaction for PREPA and Puerto Rico,” said Wes
Edens, Founder and CEO of New Fortress. “The conversion of San Juan
Units 5 & 6 to natural gas will save hundreds of millions of dollars and
accelerate the modernization of critical power infrastructure. Natural
gas power is cleaner, cheaper and is the perfect complement to renewable
energy. New Fortress is proud to invest in the security and
sustainability of Puerto Rico’s clean and renewable energy future.”
After multiple conversion attempts over the past ten years, PREPA
launched a competitive request for proposal (RFP) bid process (RFP
#81412) in July 2018 for the supply of fuel and the conversion of San
Juan Power Plant’s Units 5 and 6. NFEnergía’s bid was selected based on
fourteen grading criteria, which included experience and capacity,
approach and methodology, and price.
“For the first time, this infrastructure project will successfully bring
natural gas to the north of Puerto Rico, achieving one of the strategic
objectives of the Island’s energy sector. It also provides substantial
savings to our customers and reduces carbon dioxide (CO2 emissions),
which impact the environment and climate change", said José Ortiz
Vázquez, PREPA Chief Executive Officer. The contract has been approved
by the Puerto Rico Energy Bureau and the Financial Oversight and
Management Board for Puerto Rico.
NFEnergía will supply natural gas to the power plant from its micro fuel
handling facility in the Port of San Juan, which has been under
development for more than a year. The facility is being constructed with
multiple truck loading bays to provide liquefied natural gas to
on-island industrial customers and microgrids.
The conversion of San Juan Units 5 and 6 and the development of the
micro fuel handling facility are anticipated to be complete by mid- 2019.
About New Fortress Energy LLC
New Fortress Energy (NASDAQ: NFE) is a global energy infrastructure
company founded to help accelerate the world’s transition to clean
energy. The company funds, builds and operates natural gas
infrastructure and logistics to rapidly deliver fully integrated,
turnkey energy solutions that enable economic growth, enhance
environmental stewardship and transform local industries and
communities. New Fortress Energy is majority-owned by a fund managed by
an affiliate of Fortress Investment Group.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute
“forward-looking statements” including the estimate that the conversion
will generate $750 million in fuel cost savings over five years for
PREPA, the expectation that the development of the micro fuel handling
facility and the conversion of San Juan Units 5 & 6 will be complete by
mid-2019, the expectation that the conversion will significantly reduce
emissions including CO2, NFE’s plans for its Puerto Rico operations,
including providing liquefied natural gas to on-island industrial
consumers and microgrids, and other statements regarding NFE’s
operations, goals and strategy. You can identify these forward-looking
statements by the use of forward-looking words such as “expects,” “may,”
“will,” “approximately,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates,” or the negative version of those words or other
comparable words. These forward-looking statements represent the
Company’s expectations or beliefs concerning future events, and it is
possible that the results described in this press release will not be
achieved. These forward-looking statements are subject to risks,
uncertainties and other factors, many of which are outside of the
Company’s control, that could cause actual results to differ materially
from the results discussed in the forward-looking statements. Factors
that could cause or contribute to such differences include, but are not
limited to, the difficulty of predicting the timing or outcome of any
project in development (including the conversion of San Juan Units 5 & 6
and the construction of NFE’s micro fuel handling facility),
difficulties or delays of any project in development, the availability
and pricing of third party contractors, services and materials for use
in the conversion and the micro fuel handling facility, the market price
for natural gas and for diesel, the dispatch rate of Units 5 and 6, the
heat rate efficiency of Units 5 and 6, and the capacity of Units 5 and 6
(each on natural gas relative to diesel). Accordingly, readers should
not place undue reliance on forward-looking statements as a prediction
of actual results.
Any forward-looking statement speaks only as of the date on which it is
made, and, except as required by law, the Company does not undertake any
obligation to update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise. New factors
emerge from time to time, and it is not possible for the Company to
predict all such factors. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements in the prospectus included in the registration
statement filed with the SEC in connection with the Company’s initial
public offering, which could cause its actual results to differ
materially from those contained in any forward-looking statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190305005983/en/
Source: New Fortress Energy LLC
Jake Suski
+1 (516) 268-7433
press@newfortressenergy.com
