The alliance comprising Mitsubishi Power Americas, Inc. (Mitsubishi Power) and CONSAG Engenharia – a subsidiary of Andrade Gutierrez company (CONSAG) – has recently entered into a contract 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.

On May 10, 2024, the signing ceremony took place at the headquarters of Mitsubishi Heavy Industries, Ltd. (the parent company of Mitsubishi Power) in Tokyo. Representatives from all consortium parties attended the event, marking a significant milestone in Brazil’s largest simple cycle gas thermal power plant project. The celebration included a traditional Japanese Daruma doll ceremony, symbolizing the shared aspiration for the success of the Portocem project.

Under the EPC agreement, Mitsubishi Power will furnish four M501JAC enhanced air-cooled gas turbines for operation in a simple cycle at UTE Portocem. CONSAG, on the other hand, will assume responsibility for delivering the balance of plant, utilities, civil works, assembly, and commissioning of the facility, as well as implementing the transmission line and substation. This collaboration aims to yield 1.6 GW of firm, dispatchable power capacity, establishing Brazil’s largest peaking power plant and one of Latin America's most significant power facilities. The initiative seeks to bolster the national grid in Brazil, addressing the critical need for additional capacity to supplement the current reliance on hydropower.

In March 2024, the project, along with its 15-year Capacity Reserve Contract, secured complete regulatory approval. Portocem Geração de Energia S.A emerged as the top recipient of the inaugural Power Capacity Reserve Auction in December 2021. This project represents Mitsubishi Power's third venture involving advanced technology heavy-duty gas turbines in Brazil over the past five years, contributing to a cumulative gas turbine capacity of approximately 2.6 GW.

Commercial operation is anticipated to commence in 2026, with the construction of the thermal power plant currently underway. NFE has recently finalized the construction and commissioning of the Barcarena LNG terminal, which will provide LNG to over 2.2 GWs of capacity (owned by NFE) in Para, Brazil.

Tim Shore, Senior Vice President of LATAM Commercial and Regional Leader for Mitsubishi Power Americas, commented, “The UTE Portocem project exemplifies the growing acknowledgment within the Brazilian power generation sector of the necessity for advanced, cleaner power generation technology to adapt to market changes. At Mitsubishi Power, we possess the technology to facilitate this transition, and we express gratitude to Portocem Geração de Energia S.A for selecting us for this pivotal project.”

Recent years have witnessed fluctuations in Brazil’s energy consumption, influenced partly by droughts and environmental conditions, and partly by the electrification of 99.5% of all households. In its second update of the Nationally Determined Contributions (NDC) in October 2023, Brazil established ambitious decarbonization objectives, aiming for a 49% reduction in greenhouse gas (GHG) emissions by 2025 and 53% by 2030 compared to 2005 levels, with the ultimate goal of achieving carbon neutrality by 2050.