New Fortress Energy Inc. on March 18 said that it has sold emergency power plants it constructed on behalf of the U.S. Army Corps of Engineers in San Juan and Palo Seco, Puerto Rico, to the Puerto Rico Electric Power Authority for $373 million in cash, subject to certain items and conditions.
The plants were developed by NFE in 2023 in response to a competitive bid by the U.S. Army Corps of Engineers to provide emergency power in order to stabilize the power grid in Puerto Rico.
Meanwhile, following a competitive bid process, NFE was awarded and has entered into a new island-wide 80 TBtu gas supply contract with PREPA, ensuring continued gas supply to these power plants for up to four years.
The expanded volumes under the contract will enable conversion of other plants on the island from diesel to gas, providing lower cost, cleaner energy to Puerto Rico.
As a result of the early termination of the contracts that have governed the construction, operations, and associated costs of these plants, NFE expects to negotiate a mutually beneficial settlement of all outstanding obligations in the near future.
