Global buyout giant Apollo has agreed to set up a joint venture with New Fortress Energy to acquire 11 LNG infrastructure vessels from NFE for $2bn.
Apollo will own 80% of the joint venture.
The firm said the new platform will provide critical infrastructure for the delivery, storage, and regasification of LNG to power countries around the world to help reduce their reliance on oil and coal. The platform will serve a customer base of utilities and energy companies worldwide on top of NFE’s projects.
Brad Fierstein, partner at Apollo, said, “Energy transition and energy reliability are global priorities and core to Apollo’s sustainable investing platform. We’re pleased to further these initiatives through this long-term investment alongside our JV partners at New Fortress Energy.
“This is a high-quality portfolio that increases energy security around the world, accelerates decarbonization efforts, and facilitates LNG use which is cleaner and more affordable than diesel. We look forward to investing behind the platform’s growth to drive a more sustainable future.”
Apollo said in February it hoped to deploy more than $100bn in clean energy and climate capital by the end of the decade after reports said that it had pledged not to invest in fossil fuels from its $25bn-targeting new flagship buyout fund.
Apollo’s $24.6bn Fund IX, its previous flagship fund, backed just two companies that provide services to the oil and gas sector, despite marketing the space as a core focus when seeking money from investors.
The firm said it had deployed more than $19bn into energy transition and sustainability-related investments over the last five years, supporting companies and projects across clean energy and infrastructure, including offshore and onshore wind, solar, storage, renewable fuels, electric vehicles as well as a wide range of technologies to facilitate decarbonization.
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