Excelerate Energy Improves FSRU Operations with Wärtsilä Gas Solutions Reliquefaction Retrofit Project

Rhea-AI Summary

Excelerate Energy (NYSE: EE) has partnered with Wärtsilä Gas Solutions to enhance its floating storage regasification unit (FSRU) operations. The agreement involves purchasing a reliquefaction system for retrofit installation on one of Excelerate's FSRUs. This system will be adaptable to any of Excelerate's existing vessels based on customer demand or future LNG projects.

The retrofit project aims to improve environmental performance by reliquefying boil-off gas and returning it to cargo tanks, thereby reducing emissions and preserving cargo. The system incorporates the latest technology to minimize maintenance and operational costs. Delivery of the Wärtsilä reliquefaction system is scheduled for early 2026.

Positive

• Partnership with Wärtsilä Gas Solutions for advanced reliquefaction technology
• Potential reduction in emissions and cargo loss through boil-off gas reliquefaction
• Flexibility to install the system on any of Excelerate's existing vessels
• Expected improvement in environmental footprint of FSRU operations

Negative

• None.

Insights

Financial Analyst

Excelerate Energy's investment in a reliquefaction system for its FSRUs demonstrates a strategic move towards operational efficiency and environmental sustainability. While the financial terms aren't disclosed, this retrofit project is likely to yield long-term benefits. By reliquefying boil-off gas, Excelerate can reduce cargo loss and potentially increase revenue. The technology's ability to minimize maintenance and operational costs should positively impact the company's bottom line. Moreover, this green initiative could enhance Excelerate's appeal to environmentally conscious customers and investors, potentially leading to increased market share and improved stock performance in the long run.

Environmental Engineer

This retrofit project marks a significant step in reducing the environmental impact of FSRU operations. By reliquefying boil-off gas, Excelerate Energy is effectively reducing greenhouse gas emissions that would otherwise be released into the atmosphere. This aligns with global efforts to combat climate change and could position Excelerate favorably in regions with strict environmental regulations. The project also demonstrates a commitment to sustainable practices in the LNG industry, which could become a competitive advantage as the world transitions towards cleaner energy solutions. Investors should note that such green initiatives often lead to improved ESG scores, potentially attracting more socially responsible investors.

LNG Market Analyst

Excelerate Energy's investment in reliquefaction technology is a smart move in the evolving LNG market. With increasing global demand for natural gas, especially in emerging markets, FSRUs play a important role in LNG distribution. This retrofit enhances Excelerate's operational flexibility, allowing them to deploy the upgraded FSRU to various projects based on customer demand. The ability to reduce cargo loss through reliquefaction could give Excelerate a competitive edge in securing long-term contracts. Moreover, as the industry faces scrutiny over emissions, this green initiative could help Excelerate maintain its market leadership and potentially command premium rates for its environmentally friendly FSRUs.

THE WOODLANDS, Texas--(BUSINESS WIRE)-- Excelerate Energy, Inc. (NYSE: EE) (the “Company” or “Excelerate”) has entered into an agreement with Wärtsilä Gas Solutions, part of technology group Wärtsilä, to purchase a reliquefaction system for retrofit installation onboard one of Excelerate’s floating storage regasification units (FSRUs). The equipment will be available to be installed on any of Excelerate’s existing vessels based on customer demand or for prospective LNG projects. The retrofit project will improve the environmental footprint of Excelerate’s FSRU operations by reliquefying boil-off gas and returning it back to the cargo tanks, thus reducing emissions and saving cargo at the same time. The system is also fitted with the latest technology and features to minimize maintenance and operational costs.

“We are committed to reducing the environmental footprint in all our operations, and this project is a substantial part of that commitment. We are very pleased to partner up with Wärtsilä Gas Solutions for this project, as their unmatched experience in reliquefaction systems, state-of-the-art technology, and all-round project engineering capabilities make them the ideal partner for us,” said David Liner, COO at Excelerate Energy.

“As a market leader in types of cryogenic gas applications, Wärtsilä Gas Solutions has demonstrated to the market for many years that we have the technology to contribute to greener shipping operations. We are, of course, very proud to be partnering with an industry-leader such as Excelerate Energy, which is a strong testament to our capabilities in delivering quality, commercial value and environmental benefits to our clients,” commented Walter Reggente, VP Wärtsilä Gas Solutions.

Delivery of the Wärtsilä reliquefaction system is scheduled for early 2026.

ABOUT EXCELERATE ENERGY

Excelerate Energy, Inc. is a U.S.-based LNG company located in The Woodlands, Texas. Excelerate is changing the way the world accesses cleaner forms of energy by providing integrated services along the LNG value chain with the objective of delivering rapid-to-market and reliable LNG solutions to customers. The Company offers a full range of flexible regasification services from FSRUs to infrastructure development to LNG supply. Excelerate has offices in Abu Dhabi, Antwerp, Boston, Buenos Aires, Chattogram, Dhaka, Doha, Dubai, Helsinki, London, Manila, Rio de Janeiro, Singapore, and Washington, DC. For more information, please visit https://www.excelerateenergy.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240919834931/en/

Investors

Craig Hicks

Excelerate Energy

Craig.Hicks@excelerateenergy.com

Media

Stephen Pettibone / Frances Jeter

FGS Global

Excelerate@fgsglobal.com

or

media@excelerateenergy.com

Source: Excelerate Energy, Inc.

FAQ

What is the purpose of Excelerate Energy's agreement with Wärtsilä Gas Solutions?

Excelerate Energy (NYSE: EE) has agreed to purchase a reliquefaction system from Wärtsilä Gas Solutions for retrofit installation on one of its floating storage regasification units (FSRUs) to improve environmental performance and reduce cargo loss.

How will the reliquefaction system benefit Excelerate Energy's FSRU operations?

The reliquefaction system will reduce emissions and save cargo by reliquefying boil-off gas and returning it to the cargo tanks, improving the environmental footprint of Excelerate Energy's (EE) FSRU operations.

When is the Wärtsilä reliquefaction system scheduled for delivery to Excelerate Energy (EE)?

The Wärtsilä reliquefaction system is scheduled for delivery to Excelerate Energy in early 2026.

Can the new reliquefaction system be installed on any of Excelerate Energy's (EE) vessels?

Yes, the reliquefaction system will be available for installation on any of Excelerate Energy's existing vessels based on customer demand or for prospective LNG projects.