New Fortress Energy Secures Long-Term Gas Supply Deal for Power Plant in Puerto Rico
Key Ideas
- New Fortress Energy secures a 20-year gas supply agreement for a 478 MW combined-cycle power plant in San Juan, Puerto Rico.
- The power plant, developed by Energiza, will have the capacity to operate on hydrogen in the future, contributing to Puerto Rico's energy transition.
- The facility will enhance the reliability and resiliency of Puerto Rico's electric grid, diversify energy sources, and reduce reliance on fossil fuels.
- The project reflects the island's interest in embracing renewable energy and hydrogen technology, with expectations to cut carbon emission intensity.
New Fortress Energy (NFE) has acquired a significant gas supply deal for a 478 MW combined-cycle power plant in San Juan, Puerto Rico. The 20-year agreement with Energiza will allow NFE to supply natural gas to the power plant, which is set to commence operations in 2028. While the plant will initially run on LNG, it is designed to transition to hydrogen fuel in the future, aligning with Puerto Rico's energy transition goals.
The partnership aims to deliver cleaner, reliable, and efficient power to improve Puerto Rico's aging power system. Additionally, the project includes a power purchase and operating agreement with the Puerto Rico Electric Power Authority (PREPA), covering the development of a multi-fuel capable LNG to H2 generation facility. This facility will have the capability to use natural gas, ultra-low sulfur diesel, and eventually transition to 100% green hydrogen, enhancing energy source diversification and reducing reliance on fossil fuels.
The introduction of hydrogen technology in the power plant is anticipated to lower carbon emissions and mark a significant step towards sustainability. The project signifies a key milestone in Puerto Rico's energy landscape, being the first power plant since 1995 and the first with hydrogen fuel capability. New Fortress Energy's involvement in such projects showcases a commitment to renewable energy and innovation amidst its other global ventures in the energy sector.
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