Update: Mitsubishi Hitachi Power Systems, Patria Investments and Shell Announce Financial Close of Marlim Azul Power Plant
Mitsubishi Hitachi Power Systems Americas (MHPS), Patria Investments, and Shell announced the signing of a contract with Brazils State-owned development bank (BNDES) to finance the gas-powered Marlim Azul Energia power plant, in Maca (Rio de Janeiro State).
Mitsubishi Hitachi Power Systems Americas (MHPS), Patria Investments,
and Shell announced the signing of a contract with Brazil’s State-owned
development bank (BNDES) to finance the gas-powered Marlim Azul Energia
power plant, in Macaé (Rio de Janeiro State). The loan approved by the
bank for the construction of the plant is BRL 2 billion over 24 years.
“The contract with BNDES is an important step in the development of a
project that will make a decisive contribution to the consolidation of
the new gas market, making the market and prices more competitive. We
are making energy generation from Brazilian pre-salt gas a reality,”
says Bruno Chevalier, CEO of Marlim Azul Energia.
Formally agreed to in December 2018, the joint venture between Patria,
Shell and MHPS includes development of the plant, as well as trading of
the energy generated. Patria Investments has a 50.1% stake in the
project, while Grupo Shell has 29.9% and MHPS has 20%.
“BNDES’s faith in Marlim Azul reflects the capability demonstrated by
Patria over the years in developing solid and efficient assets that have
been contributing to the expansion of Brazil’s infrastructure in several
segments. For Patria, the energy area is one of the most relevant in
Brazil, with a lot of opportunities for private initiatives,” says
Otavio Castello Branco, a partner in Patria, and head of investments in
infrastructure.
The plant will begin operation in January 2023. The joint venture is
investing BRL 2.5 billion (approx. USD 650M) in the construction of the
thermoelectric plant, with Shell Brasil Petróleo Ltda supplying the gas.
At its peak, construction of the plant will employ around 1,500 people.
“It is a pioneering and competitive project that will enable us to
monetize Brazil’s pre-salt natural gas. To do this, we chose partners
who share our purpose and our vision of the future. Marlim Azul is the
latest indication of our bet on energy transition. Establishing a new
value for natural gas and underscoring our production in energy and
trading makes this project a milestone in our century of history in
Brazil,” says the CEO of Shell Brasil, André Araujo.
The 565 MW Marlim Azul plant is the first of Brazil’s pre-salt
gas-powered energy projects to win an auction, offering very attractive
electricity prices for consumers. The plant is also the first in Brazil
to use the MHPS M501JAC gas turbine, which is the world leader in
efficiency and lower carbon emissions. The JAC technology also has high
operational flexibility which allows the plant to complement
intermittent renewable generation.
“MHPS is proud to be the initial developer and the technology solution
provider for the Marlim Azul power project,” said Paul Browning, CEO and
President of MHPS Americas. “Our JAC Power Island will efficiently
convert domestic pre-salt associated gas into electricity for a growing
Brazilian economy. This is a Change in Power.”
About Patria Investments
Patria Investments is the leader in alternative asset management in
Latin America, with over 30 years of experience in Private Equity,
Infrastructure, Real Estate and Credit. Patria currently has ten offices
in some of the world's leading financial centers. Since 2010, Patria has
Blackstone, a global leader in alternative investment management, as a
relevant partner. Additional information is available at: www.patria.com.
About Shell
A global energy company with 112 years in business and employing about
90,000 people in more than 70 countries, Shell has been in Brazil since
1913, where it employs about 800 people. Our main objective is to serve
the energy needs of society today and in the future, operating in a
responsible manner economically, environmentally and socially. Shell’s
activities in Brazil take in business in Upstream segments – in
Exploration and Production, and in Marine. In the Downstream segment,
the company also operates in the Lubricant sector. The other businesses,
including retail fuel distribution, are managed by the joint venture,
Raízen. Shell was the first private company to produce petroleum in the
Campos Basin after the market was opened up.
About Mitsubishi Hitachi Power Systems
Mitsubishi Hitachi Power Systems Americas, Inc. (MHPS Americas),
headquartered in Lake Mary, FL, employs more than 2,000 power generation
and energy storage experts and professionals. Our employees are focused
on our customers, and empowering them to affordably and reliably combat
climate change while also advancing human prosperity. MHPS Americas’
expertise includes natural gas, steam, aero-derivative, geothermal, and
distributed renewable power generation technologies and services, along
with renewable hydrogen and battery energy storage systems,
environmental control systems solutions, and digital solutions enabling
autonomous operations and maintenance of power assets throughout North
and South America. MHPS Americas is a subsidiary of Mitsubishi Hitachi
Power Systems (MHPS), a joint venture between Mitsubishi Heavy
Industries, Ltd. and Hitachi, Ltd. integrating their operations in power
generation systems.
Learn more about MHPS by visiting www.changeinpower.com.
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