February 23, 2022 (IEEFA) – New Fortress Energy’s (NFE) development and expansion of natural gas projects around the world is “unnecessary, unwelcome and unaffordable,” according to an analysis of the company’s global projects by the Institute for Energy Economics and Financial Analysis.
NFE’s short-term track record shows mixed results and the company lacks a compelling long-term rationale. New Fortress is overpromising and underdelivering the benefits of gas assets in various markets, presenting risks for investors and ratepayers who face being locked into expensive, carbon-intensive energy supplies.
“New Fortress Energy’s presence in the market creates a risky financial and dysfunctional economic dependence on gas as a future resource for host nations and communities,” said Tom Sanzillo, IEEFA’s director of financial analysis and the author of the report. “In most instances, its new projects expose ratepayers to higher electricity prices and undermine efforts to build cheaper, more reliable and environmentally sound energy.”
The analysis notes a number of New Fortress projects that present risks for investors:
“NFE’s business investments are on a collision course with global policy and capital allocation trends that are moving away from fossil fuels,” Sanzillo said. “By pushing out the development of renewable energy investments in favor of gas, its customers and investors face dependence on a resource that exposes economies to inflation, volatile pricing and a high likelihood of stranded assets.”
Full Report: New Fortress Energy: Promises to Keep
Tom Sanzillo ([email protected]) is IEEFA director of financial analysis.
Suzanne Mattei ([email protected]) is an IEEFA energy policy analyst.
Vivienne Heston ([email protected]), +1 (914) 439-8921
About IEEFA: The Institute for Energy Economics and Financial Analysis (IEEFA) examines issues related to energy markets, trends and policies. IEEFA’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.