The International Finance Corporation (IFC) is providing a $288 million 15-year loan to UTE GNA I Geração de Energia (GNA I) for the development, construction and operation of an integrated liquefied natural gas to power (LNG-to-power) facility in Porto de Açu, Brazil.
The project is being developed by GNA (Gás Natural Açu), which is a joint venture among Prumo Logística, BP and Siemens, focused on structuring, implementing and operating sustainable energy and gas projects.
The GNA I project, expected to start commercial operation in 2021, consists of an integrated 1.3GW combined cycle gas turbine (CCGT) based-fired power plant, an LNG import marine terminal, a transmission line, and the expansion of an existing substation.
The plant will be linked to Brazil’s electrical grid. The
project is part of the largest LNG-to-power complex in Latin America, and is
being built by GNA at Port of Açu.
IFC’s investment in GNA I will support the diversification of Brazil’s energy matrix, enhancing system resilience, promoting energy security, and contributing to reliable and affordable energy.
With a best-in-class efficiency rating, GNA I will also displace coal and other carbon intensive thermal power plants, thereby reducing Brazil’s carbon footprint by an estimated 139 thousand tons of CO2 equivalent emissions annually.
Brazil’s installed generation capacity
Hydropower plants account for approximately 70% of Brazil’s installed generation capacity, and long droughts in recent years have highlighted the need for a more flexible and reliable mix of energy generation sources.
GNA I is designed to dispatch the plant during the dry
season and when the system needs it the most, allowing for the replenishment of
the hydro reservoirs while promoting further penetration of renewable sources
of energy such as solar and wind.
In addition to its role as a highly-efficient and flexible power plant, GNA I is the stepping stone to the first fully-integrated private natural gas hub in Brazil and one of only a few in Latin America.
The development of such hub is critical for increasing the competitiveness of Brazil’s natural gas sector, which has recently been opened to private-sector investment.
“Today is a remarkable day for GNA as we celebrate the signing of IFC´s financing to the GNA I TPP. We are building and structuring a transformational project that currently employs 2,500 people, 70% of whom are local residents, and will contribute to the diversification of the Brazilian energy matrix,” says Bernardo Perseke, CEO of GNA.
In addition to IFC’s loan, the financing package of GNA I includes a BRL 1.76 billion ($475 million) loan from BNDES, structured in a partnership with KfW IPEX-Bank. KfW IPEX-Bank, in turn, is supported by Euler Hermes Aktiengesellschaft, the German Export Credit Agency.
Senior manager in IFC’s infrastructure department, Lance Crist commented: “A sustainable energy matrix, resilient throughout seasonal variations, is critical for Brazil’s long-term competitiveness and economic growth.
“IFC views LNG- to-power as a global strategic priority in supporting countries to access and integrate with global energy markets, while reducing carbon intensity of power grids, and favoring further penetration of renewable energy.”