Pátria Investimentos, Shell and Mitsubishi Hitachi Power Systems (MHPS) announce thermoelectric partnership
fev 25, 2019
Joint venture will invest US$700 million in pioneering energy project. The partnership includes construction of the power plant and the sale of its energy on both the regulated and the free power trading markets.
Rio de Janeiro – Pátria Investimentos, the Shell Group and Mitsubishi Hitachi Power Systems (MHPS) have announced the construction and operation of the Marlim Azul (Blue Marlin) gas-powered thermoelectric power plant in Macaé, Rio de Janeiro state in Brazil. The partnership includes construction of the power plant and the sale of its energy on both the regulated market, via the National Electrical Energy Agency (ANEEL) auction held in December 2017, and in the free power trading market (ACL), via Shell Energy Brasil S.A. Pátria Investimentos will own 50.1% of the project, alongside the Shell Group, with 29.9%, and MHPS, with 20%.
“This is a key project for future development of the energy industry and the Brazilian economy. We believe this initiative reflects the industry’s requirements”, said Otavio Castello Branco, a partner at Pátria Investimentos.
The Marlim Azul (565MW) plant was the first project to win the energy auctions based on Brazilian pre-salt gas, with one of the most competitive variable unit costs (VUC) of any gas-powered plant. The plant is expected to come online in 2022 and will generate additional power, which will be sold on the free market. The joint venture will invest US$700 million building the thermal plant, which will receive gas from Shell Brasil Petróleo Ltda.
“This is a key, strategic step forward for Shell in Brazil as it looks to diversify its portfolio and leverage Brazil’s energy transition. We have been focusing on ways of efficiently monetizing the natural gas from pre-salt fields, where we have taken on an increasingly important role. The project will provide synergies across our deep-water, gas and electrical energy businesses and we have joined with partners who are committed to and aligned with our goals”, said André Araujo, CEO of Shell Brasil Petróleo Ltda.
The first plant to use the MHPS gas turbine equipped with M501JAC technology in Brazil, Marlim Azul is expected to dispatch more than 80%, which will enable it to complement the intermittence of renewable generation by exploring natural pre-salt gas reserves. At the peak of plant construction, up to 1,500 direct jobs may be created.
“MHPS is privileged to bring our world leading technology to Brazil as we help usher in a new era of using Brazilian pre-salt gas to provide flexible power that will compliment intermittent wind and solar power generation”, said Paul Browning, CEO of MHPS Americas. Browning added that: “The opportunity for increased energy stability using pre-salt associated gas is an energy breakthrough for Brazil that we and our partners at Patria and Shell will make happen. Together, we will deliver a change in power”.
About Pátria Investimentos
Pátria Investimentos, a manager of alternative investment funds with 30 years experience in Latin America, pioneered the Private Equity industry in Brazil. It is also active in Infrastructure, Real Estate and Credit. Pátria currently has offices in key cities, including São Paulo, Rio de Janeiro, New York, Los Angeles, London, Dubai, Hong Kong, Bogotá and Santiago. Since 2010, Blackstone, one of the world’s leading alternative asset managers, has been one of Pátria’s major shareholders. For further information, please click here: www.patria.com
Shell is a global energy company, which first began trading 112 years ago and currently employs 90,000 people in more than 70 countries. It arrived in Brazil in 1913, where it currently has 800 staff. Our main objective is to meet society’s current and future energy requirements, which means being economically, environmentally and socially responsible. In Brazil, Shell is involved in the Upstream sector – in the Marine, Exploration and Production areas. In the Downstream sector, it is also involved in the Lubricants business. Its other businesses, which include retail fuel distribution, I managed by Raízen, a joint-venture between Shell and Cosan. Shell was the first private-sector company to produce oil in the Campos Basin when the market was deregulated. In 2018, Shell won a concession at auction that includes four blocks in the Campos and Potiguar Basins and acquired the Tres Marias and Saturno blocks in the Santos Basin pre-salt field.
About Mitsubishi Hitachi Power Systems Americas, Inc.
Headquartered in Lake Mary, FL, MHPS Americas employs more than 2,000 people who design, build, install, monitor and service aeroderivative and heavy-duty natural gas, steam and geothermal turbines, generators, and environmental control systems throughout North and South America. MHPS Americas also collaborates with customers to deploy artificial intelligence and low carbon technologies to take the cost and carbon out of the electric power value chain. MHPS Americas is subsidiary of Mitsubishi Hitachi Power Systems, a joint venture between Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd. PWPS and MD&A are wholly owned subsidiaries of MHPS Americas. MH Power Systems América Latina is headquartered in São Paulo, Brasil. Learn more about MHPS visiting www.changeinpower.com.
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