New Fortress Energy Starts Construction on 1.6 GW Power Plant in Brazil

New Fortress Energy (NFE) is executing an EPC contract with a consortium comprised of Mitsubishi Power Americas and Andrade Gutierrez (MHI/AG) for a planned 1.6 GW power plant near the Barcarena LNG terminal. NFE issued a full notice to proceed to the MHI/AG consortium for the beginning of construction work under the EPC contract. The plant will provide power capacity according to a 15-year capacity reserve contract closed in March 2024, which NFE purchased from Denham Capital and CEIBA Energy.

“We are very pleased to announce this EPC Contract and the start of construction for our 1.6 GW power plant in Barcarena,” said Andrew Dete, Managing Director of New Fortress Energy. “We are grateful to our partners at Mitsubishi Power and Andrade Gutierrez for their swiftness and collaboration in placing this great project into construction and we look forward to finalizing the work over the next 24 months.”

Barcarena LNG terminal, Brazil; Image Credits: New Fortress Energy

The EPC contract is fixed-price and date-certain, with construction activities currently underway for the thermal power plant. Commercial operations are expected to begin no later than August 2026, and the plant will operate under the 15-year capacity reserve contract with the Brazilian Chamber of Electric Energy Commercialization.

“This 1.6 GW power plant is a historic project for Brazil. It will allow for an efficient energy transition and ensure the reliability of the national electrical system,” said Tim Shore, Senior Vice President of LATAM Commercial and Regional Leader for Mitsubishi Power Americas. “We are proud to participate together with Andrade Gutierrez to design and construct this important project to support NFE’s growth in Brazil.”

In March 2024, NFE announced the start of operation at the 6 MTPA (300 TBtu) Barcarena LNG terminal in Pará, Brazil, with an Energos Celsius floating storage regasification unit (FSRU) on-site. The terminal is located at the mouth of the Amazon River and serves as the only natural gas supply source in Pará and the northern regions of Brazil. The facility contains an offshore terminal and FSRU that will supply LNG to several industrial customers, including a 15-year contract with Norsk Hydro’s Alunorte alumina refinery.

“Our Barcarena complex is a great example of NFE’s fully integrated LNG-to-power business model, where our LNG import terminal provides a significant competitive advantage,” said Wes Edens, Chairman and CEO of New Fortress Energy. “We are honored to support Brazil, the state of Pará, and Norsk Hydro in their decarbonization efforts while growing energy supply and economic opportunity in the region.”

NFE will begin deliveries of natural gas to the Alunorte refinery under a 15-year gas supply agreement and will supply the alumina facility with approximately 30 TBtus of natural gas per year. These deliveries are expected to reduce the refinery’s CO₂ emissions by an estimated 700,000 tons per annum and supports Norsk Hydro’s commitment to reduce greenhouse gas emissions 30% by 2030.

The Santa Catarina LNG terminal, dubbed Terminal Gas Sul (TGS), also went into operation in March along with Energos’ Winter FSRU onsite. TGS is an offshore LNG import terminal with an approximate capacity of 6 MTPA (300 TBtu) and a maximum gas send out of 500 mmscf/day.