New Fortress Energy has a limited track record of successes, and faces significant challenges in meeting the promises it has made to investors and energy consumers at home and abroad.
New Fortress Energy continues to invest significantly in new oil and gas projects despite warnings from climate experts and market trends towards development of renewables.
NFE’s business investments are on a collision course with global policy and capital allocation trends away from fossil fuels.
The business model for New Fortress Energy (NFE) supports the expansion of natural gas use around the world. The company’s financial progress has been slow. For a new company entering risky markets, asking investors for patience is not unreasonable—but ignoring red flags is perilous.
From a climate perspective, NFE’s rationale is bankrupt. The Intergovernmental Panel on Climate Change (IPCC) and International Energy Agency (IEA) have sounded alarms that the world cannot afford more new oil and gas projects. Major financial institutions are warning community and national governments to think twice about overexposure to natural gas. Market and policy analysts emphasize the expanding need, desirability and affordability of renewable energy investments.
For the most part, NFE’s natural gas planned facilities are unnecessary, unwelcome and unaffordable.
NFE’s presence in the market creates a risky financial and dysfunctional economic dependence on natural gas as a future resource for host nations and communities. In most instances, its new projects expose host communities to higher electricity prices and undermine efforts to build cheaper, more reliable and environmentally sound renewable energy.
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