Operations powered by LNG anticipated to commence by 2028
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Governor Pedro Pierluisi Urrutia, accompanied by Gerardo Lorán Butrón, Interim Executive Director of the Puerto Rico Public-Private Partnerships Authority (P3A), declared on Sunday the choice of Energiza for the design, financing, construction, operation, and maintenance of a new power generation facility in San Juan that will generate 478 megawatts of electricity.
Initially, the new facility will operate using liquefied natural gas, with future capability to utilize hydrogen.
“This generating unit is a groundbreaking project, as it will be the first power station in Puerto Rico capable of utilizing hydrogen and one of the few globally,” the governor remarked in a written statement. “The plant will incorporate state-of-the-art technology, enabling it to function with enhanced efficiency and reliability compared to existing plants on the island. This agreement marks a pivotal step toward stabilizing Puerto Rico’s electrical infrastructure, given that no large-scale private generating facility has been constructed in over two decades.”
Pierluisi also mentioned that the collaboration between the Puerto Rico Electric Power Authority (PREPA), which oversees the island’s generation, transmission, and distribution assets, and Energiza “reinforces my dedication to revolutionizing the island’s electrical framework to attain the energy service stability our residents deserve.”
“This new facility will be significantly more efficient and environmentally friendly compared to the current units, many of which are over 50 years old and struggle to meet federal environmental standards,” the governor continued. “Once operational, we will have the opportunity to retire several of those outdated PREPA plants. Concurrently, we are committed to integrating over 2,000 megawatts of renewable energy into the grid through agreements already established with various private operators that will set up solar panels and large-scale energy storage solutions. This strategy is guiding us toward transforming our energy system into a contemporary infrastructure that fosters Puerto Rico’s socioeconomic growth.”
The anticipated start date for the new facility is June 30, 2028. Energiza consists of the Puerto Rican firms Tropigas de Puerto Rico Inc. and Cratos Project Services PR LLC, along with Mitsubishi Américas Power Inc. and NAES Corp. forming part of its consortium. The group was chosen through a competitive and transparent process under Law 120-2018 (Law to Transform the Puerto Rico Electric System) and Law 29-2009 (Public-Private Partnerships Law), aligning with directives from the Puerto Rico Energy Bureau (PREB), which were also consistent with the Integrated Resource Plan and Puerto Rico’s energy policy.
Throughout the approximately 21-month bidding process, six companies were evaluated as qualified bidders. The agreement, structured as an energy purchase and operation contract between Energiza and PREPA, spans 30 years, with potential extensions of two additional ten-year terms. The contract has been endorsed by the governing boards of P3A, PREPA, the PREB, and the Financial Oversight and Energy Board. The projected initial cost of the energy the facility will contribute to the grid is estimated at 11.6 cents per megawatt.
Lorán Butrón, interim executive director of P3A, stated: “Once again, we have demonstrated that our processes are effective and suitable for the transformation and modernization of Puerto Rico’s critical infrastructure.”
“Today, we formalized an agreement that serves as a crucial element in energy generation in Puerto Rico, as it introduces additional advanced resources to tackle the generation shortfall,” he added. “The selection of Energiza underwent an exhaustive evaluation process to ensure the project’s objectives are met and to enhance the island’s energy reliability.”
PREPA Executive Director Josué A. Colón Ortiz highlighted that the contract signing between the public corporation and Energiza plays a vital role in the energy system’s transformation.
“This agreement reinforces our commitment to ensuring continuous energy production managed efficiently, economically, and in an environmentally responsible manner …” he remarked.
