Financing approved for 565MW gas-fired power plant in Brazil

• 4 years ago (2020-01-08)
• David Flin

Gas 371 Latin America 75

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Mitsubishi Hitachi Power Systems Americas (MHPS), Patria Investments , and Shell have announced the signing of a contract with Brazil’s state-owned development bank BNDES to finance the gas-fired Marlim Azul Energia power plant, in Macaé, Rio de Janeiro state. The 565MW Marlim Azul plant is the first of Brazil’s pre-salt gas-fired energy projects to win an auction, and it is also the first in Brazil to use the MHPS M501JAC gas turbine. The JAC technology has high operational flexibility allowing the plant to complement intermittent renewable generation.

Patria Investments has a 50.1 per cent stake in the project, while Shell has 29.9 per cent and MHPS has 20 per cent. The loan approved by the bank for the plant construction is for $500 million over 24 years.

The plant is scheduled to start operations in January 2023. The joint venture is investing $650 million in the plant’s construction. Shell Brasil Petróleo Ltd will supply the gas.

Paul Browning, CEO and President of MHPS Americas, said: “MHPS is proud to be the initial developer and the technology solution provider for the Marlim Azul power project. Our JAC Power Island will efficiently convert domestic pre-salt associated gas into electricity for a growing Brazilian economy.”