MPC Energy Solutions announces exit from CHP project in Puerto Rico

MPC Energy Solutions release

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.