BNDES approves BRL2bn financing for 565 MW Marlin Azul gas-fired thermoelectric power plant in Rio de Janeiro

Patria Investments, Shell and Mitsubishi Hitachi Power Systems Americas (MHPS) have signed a contract with Brazil’s State-owned development bank (BNDES) for the financing of the gas-powered Marlim Azul Energia thermoelectric plant, in Macaé (Rio de Janeiro State). 

BNDES has approved BRL2 billion (US$612.08 million) loan for over 24 years for the project. 

Formally agreed in December 2018, the joint venture among Patria, Shell, and MHPS develops the plant, as well as trading of the energy generated, both in the captive market through auction held by the National Electrical Energy Agency (ANEEL) in December 2017, and in the Free Contracting Environment (ACL, in Portuguese), through Shell Energy Brasil. Patria Investments has a 50.1% stake in the project with Grupo Shell having 29.9% and MHPS, 20%.

The Marlim Azul plant (565 MW) is the first of Brazil’s pre-salt gas-powered energy projects to win an auction, offering one of the most competitive variable unit costs (VUCs) in gas-powered plants. The plant will come into operation in January 2023. The joint venture is to invest BRL2.5 billion (US$611.7 million) in the construction of the thermoelectric plant, with Shell Brasil Petróleo Ltda supplying the gas.

The first plant to use a gas-powered MHPS turbine with M501JAC technology in Brazil, Marlim Azul is expected to have a dispatch efficiency of more than 80%, which will allow it to complement renewable generation intermittency with pre-salt natural gas reserves. At its peak, the construction of the plant directly employs around 1,500 people.