New York-listed New Fortress Energy is hooking up with US-based Fortress Transportation and Infrastructure in a joint venture that will focus on hydrogen and clean energy.
In a first-quarter results statement, New Fortress said the new venture — Zero Parks — will start with near-term opportunities for renewable diesel and blue hydrogen.
“Zero Parks aims to reach FID [final investment decisions] on its first two projects in 90 to 120 days,” New Fortress said.
The Wes Edens-led company has been researching how to move into hydrogen under its goal to become a net-zero emissions business.
Terminal start-ups
Updating on its under-construction LNG import projects, New Fortress said all of its development projects are advancing “on budget and schedule”.
The company said its terminals in Mexico and Nicaragua are expected to be operational in the second quarter of this year.
New Fortress, which is also developing four LNG import terminals in Brazil, revealed that its first ISO Flex vessel has arrived in La Paz, Mexico, and two more units are due in Nicaragua this quarter.
Under this concept, the company is using offshore supply vessels or barges to ship in 10,000-gallon ISO containers filled with LNG by larger vessels, with the aim of removing the time constraints and costs of building marine infrastructure.
Rig buys
During the quarter, the company closed its $5.1bn acquisition of Hygo Energy Transition Ltd, the former Golar Power, and Golar LNG Partners. The deal gives it a 14-vessel fleet that includes eight floating storage and regasification units.
New Fortress saw its net loss deepened in the first quarter to $39.5m, from $500,000 in the same three months of the previous year.
The company said this was largely due to higher LNG costs in the three months compared with those in the fourth quarter of 2020, along with cash associated with Hygo and Golar Partners acquisitions.
Revenues remained stable at $145.7m.
Speaking about its plans for a quick start-up floating LNG (FLNG) unit, the company said: “We continue to make great progress on our Fast LNG asset, which we expect will provide us with surety of stable supply at rates well below the current open market prices.”
The company confirmed it has bought two jack-up rigs from Maersk for its planned FLNG units, which it plans to put into operation in 16 to 20 months.
In March, New Fortress said it was paying about $30m each for them. It plans to fit modular liquefaction units to the top of them in a US shipyard and use the rigs as FLNG units.
