Mitsubishi Power and CONSAG Engage in Landmark Agreement for Portocem Thermoelectric Power Plant in Brazil Mitsubishi Power Americas, Inc. (Mitsubishi Power) and CONSAG Engenharia, a subsidiary of Andrade Gutierrez, have joined forces to ink a significant deal with Portocem Geração de Energia S.A. and New Fortress Energy, Inc. (NFE) for the engineering, procurement, and construction (EPC) of the Portocem Thermoelectric Power Plant (UTE Portocem) in Brazil. The signing ceremony, held on May 10, 2024, at Mitsubishi Heavy Industries, Ltd. headquarters in Tokyo, marked a pivotal moment in Brazil’s energy landscape. Representatives from all consortium parties attended the ceremony, which incorporated a traditional Japanese Daruma doll ritual symbolizing communal aspirations for the project’s success.
Under the EPC agreement, Mitsubishi Power will furnish four M501JAC enhanced air-cooled gas turbines for operation in simple cycle at UTE Portocem. CONSAG will oversee the balance of plant, utilities, civil works, assembly, and commissioning of the plant, along with the implementation of the transmission line and substation. Together, this collaboration will yield 1.6 GW of firm, dispatchable power capacity, making UTE Portocem Brazil’s largest peaking power plant and one of Latin America’s largest. This endeavor aims to bolster Brazil’s national grid with reliable energy, alleviating the strain on existing hydropower resources.
The project, along with its 15-year Capacity Reserve Contract, secured full regulatory approval in March 2024. Portocem Geração de Energia S.A. emerged as the top bidder in the inaugural Power Capacity Reserve Auction in December 2021. For Mitsubishi Power, this venture represents its third foray into advanced technology heavy-duty gas turbine projects in Brazil over the past five years, totaling approximately 2.6 GW of gas turbine capacity.
Construction of the thermal power plant is already underway, with commercial operation slated for 2026. NFE’s recent completion of the Barcarena LNG terminal, which will supply LNG to over 2.2 GWs of capacity in Para, Brazil, further supports the project’s progress.
Tim Shore, Senior Vice President of LATAM Commercial and Regional Leader for Mitsubishi Power Americas, remarked, “The UTE Portocem project underscores Brazil’s shift towards advanced, cleaner power generation technology to meet evolving market demands. At Mitsubishi Power, we stand ready with the requisite technology to facilitate this transition and extend our gratitude to Portocem Geração de Energia S.A. for entrusting us with this pivotal project.”
Brazil’s energy landscape has undergone flux in recent years, driven by factors such as droughts, environmental considerations, and the electrification of nearly all households. In its October 2023 update of its NDC, Brazil articulated ambitious decarbonization goals, aiming for a 49% reduction in GHG emissions by 2025 and 53% by 2030 compared to 2005 levels, with the ultimate aim of achieving carbon neutrality by 2050.
