MPC Energy Solutions announces exit from CHP project in Puerto Rico, shifts focus to development backlog
Amsterdam/Oslo – 6 October 2023 – MPC Energy Solutions (“MPCES”, “Company”) announced today that the Company will focus on core strategic areas of its business and will, as a first step, exit one of its projects in Puerto Rico, a 2.6 MW combined-heat-and-power (“CHP”) plant.
As part of the exit, MPCES will recoup the initial capital invested to fund the early stages of construction in full over the next few months, and hence does not expect to experience any direct loss related to the exit. Construction of the project will proceed to commercial operation without MPCES’ involvement.
The return of funds will improve the Company’s free cash reserves and allow MPCES to focus its resources on core strategic projects in its development backlog.
“By exiting this project, we are freeing up funds and shift our focus towards projects that are more in line with our long-term strategy”, said Stefan H.A. Meichsner, Chief Financial Officer of MPCES. “Successfully developing our own projects is where we can create the greatest value and immensely boost project returns. That must be the core of our business case.”
The Company will provide further updates on its intended capital allocation to new projects during the upcoming Q3 update on 26 October 2023.
“Our decision is ultimately an answer to changing market conditions, especially with regards to the interest rate environment, and consequently a greater appeal of utility-scale renewable energy projects in Central America to meet higher return expectations. If the strategic value of an engagement is limited, it is prudent to reduce one’s exposure”, added Meichsner.
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About MPC Energy Solutions
MPC Energy Solutions ("MPCES") is a global provider of sustainable energy and primarily focuses on low-carbon energy infrastructure, including solar and wind farms, and other hybrid and energy efficiency solutions. The Company participates in the full project lifecycle of renewable solutions, from early-stage development through construction and operation. More details at www.mpc-energysolutions.com
