News

PRESS RELEASE

• Ceiba Energy, a Denham Sustainable Infrastructure portfolio company, completes sale of 1.6GW capacity contract to New Fortress Energy
• Denham Sustainable Infrastructure continues to expand footprint in northeastern Brazil with development of a new Ceiba LNG-to-power plant on the retained site
• Ceiba continues strong asset and pipeline growth, with a total of 2.5 GW of projects in operation and development.

Houston, Texas (March 21, 2024) – Ceiba Energy, a portfolio company of Denham Sustainable Infrastructure (“DSI”), has closed on a transaction with New Fortress Energy (“NFE”) to sell a 1.6 GW Capacity Reserve Contract attached to its Portocem project in Northeast Brazil. In exchange for the capacity contract, Ceiba Energy receives $97 million in NFE convertible preferred shares. NFE also assumes a $28 million liability as part of the sale, representing a total notional value of $125 million to Ceiba.

Ceiba retains the site at Ceara, including related permits and contracts, and plans to build a new LNG-to-power plant at the location – the Jandaia project. The Jandaia project will provide up to 2.2 GW in reliable capacity to support Brazil’s ambitious renewable deployment goals, enough to power over 1.5 million homes.[i] The project will also contribute to economic security in the Brazilian state of Ceara, creating up to 3,000 jobs in the development phase, and up to 150 jobs once the plant is operational. The plant is well-positioned to capitalise on the extensive site development work already completed, including construction, licensing, and LNG supply and terminal design. The Jandaia plant will be eligible to bid in the recently announced capacity reserve auction, to be held on August 31, 2024.

In addition to developing the Jandaia project, Ceiba continues to own and operate the Breitener facility in Manaus, which provides 313MW in baseload capacity to the grid.

Brazil is leading the way in renewables development, generating over 90% of its electricity from renewable sources in 2023.[ii] As the country rapidly expands capacity of intermittent renewables such as wind and solar, capacity-firming fuel like gas and LNG has an important role to play in maintaining grid stability and providing reliable power to homes and businesses when the wind isn’t blowing, or the sun isn’t shining.

DSI’s investment and support has helped grow Ceiba Energy into a key power platform for Brazil, creating a substantial portfolio and attractive pipeline of gas and LNG power plants and generating reliable, low-cost energy for the region. The Jandaia project represents the latest addition to Ceiba’s expanding portfolio of power plants, and DSI’s continued commitment to providing reliable and affordable power to the Brazilian grid.

Justin DeAngelis, Partner and Co-Head of Sustainable Infrastructure at Denham Capital, commented: “The transaction with NFE and newly-announced project represents the next phase of growth for Ceiba Energy. The success of Ceiba Energy is a true example of DSI’s value-add strategy to support industry-leading teams to deliver affordable, sustainable power generation in high-growth economies.”

Emilio Vicens, CEO of Ceiba Energy, commented: “Closing this transaction with NFE allows Ceiba Energy to focus its efforts on the development of world-class energy infrastructure that addresses the needs of the markets we serve. The Jandaia project is well-positioned to achieve this goal in the very near future. We are excited to continue our partnership with the State of Ceara to develop the next gas hub in Brazil.”

Advisors

Ceiba was advised on this transaction by:

Latham & Watkins – US Counsel

Mattos Filho – Brazil Counsel

BTG Pactual – Financial Advisor

PwC – Tax Advisor

Notes to editor

 [i] Based on the assumption that 1GW will power c. 750,000 homes.

https://www.cnet.com/home/energy-and-utilities/gigawatt-the-solar-energy-term-you-should-know-about/

[ii] Enerdata, https://shorturl.at/aBMQ7

About Denham Capital

 Founded in 2004, Denham Capital is a global Energy Transition investment firm, having raised more than $12 billion (which includes funds now managed by Trace Capital) of capital across multiple sectors. Specializing in private equity, infrastructure and credit, we invest in sectors that are central to the economic and resource transitions happening globally. We deliver the metals and minerals and sustainable infrastructure needed for today and tomorrow.

Denham Capital sponsors entrepreneurs, delivering the financial resources and industry expertise needed to create and grow successful infrastructure and resource businesses. We seek to establish long term partnerships with entrepreneurs and companies who share our vision for growth and value creation. Our investment teams have extensive renewable power, infrastructure and mining investment experience, including technical experience as engineers, operators, and business owners.

Our firm is built on a foundation of experience, fairness, economic rationale, flexibility and trust, and we bring these values into every opportunity we pursue. We believe our tactical familiarity within our industry sectors along with a disciplined approach centered around fairness and shared success make us an ideal partner.

For more information, visit www.denhamcapital.com

About Ceiba Energy

Founded in 2015, Ceiba Energy is an owner, developer, and operator of power generation assets in Latin America. In particular, the Company focuses on delivering renewable, low-carbon and affordable power generation. The Ceiba management team brings an in-depth understanding of Latin American power markets and assets. The team has more than 180 years of combined power generation and energy infrastructure experience in Latin America and emerging markets. For more information, visit www.ceibaenergy.com.

About New Fortress Energy Inc.

New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to address energy poverty and accelerate the world’s transition to reliable, affordable, and clean energy. The company owns and operates natural gas and liquefied natural gas (LNG) infrastructure and an integrated fleet of ships and logistics assets to rapidly deliver turnkey energy solutions to global markets. Collectively, the company’s assets and operations reinforce global energy security, enable economic growth, enhance environmental stewardship and transform local industries and communities around the world.

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