Wes Edens Gives hope to Hydro through Natural gas
With the signing of a Memorandum of Understanding between New fortress Inc. headed by Wes Edens and Norsk Hydro is a huge win for Hew Fortress. The (MoU) that has the supply of Natural gas to Hydro’s subsidiary, Alunorte Alumina Refinery based in Para, Brazil, will supply the gas for 15years consistently. The transition of the Alunorte refinery into using a more affordable and clean energy will not only be beneficial to the company, but also to the environment as well.
As part of the changes that will be seen by the Hydro company, Is the converting process of calcination as well as the steam generation part of Alunorte. These changes will see a transformation in performance in the company and changes that are highly acceptable in the reduction of emissions which will be up to 20% approximately. This will be well facilitated by the change of use of fuel oil to that of natural gas.
As with any agreement that is entered to, the involved parties are expected to hold their end of deal. To facilitate the agreement in place to the latter, there are specific details that have to be taken care of, as for NFE they will be required to deliver the agreed minimum amount of natural gas to the refinery. The natural gas supply from NFE will be coordinated from the companies’ Barcerena LNG through the terminal that will be receiving and regasification located in Para state in Brazil. Wes Edens further states that this long term relationship is expected to assist Hydro in a huge way.
However, according to Wes Edens, the proposed agreement has not been documented, the involved parties have to work together to finalise Any commercial arrangements that are pending to easily facilitate the final documentation of the agreement. The expected terminal of the Barcerena is predicted to complete by 2022 in order to be able to supply natural gas to the expected destination.