BNamericas - Shell To Invest US$560mn in Electric Power in Brazil
BNamericas - Shell To Invest US$560mn in Electric Power in Brazil
BNamericas - Shell To Invest US$560mn in Electric Power in Brazil
NEWS
BRAZIL
ELECTRIC POWER OIL & GAS
Shell plans to invest 3bn reais (US$560mn) in electric power in Brazil by 2025, the company’s local new energies head, Guilherme Perdigão, told a
press conference on Tuesday.
The funds will be earmarked for renewable energy, including PV solar and wind power projects, and thermoelectric plants fired by natural gas from
its deepwater assets in the country and LNG imports.
“Thermoelectric generation is key to complementing renewables,” Perdigão said, highlighting that the main target will be industrial clients.
A first practical example was the agreement signed last July with Brazilian steelmaker Gerdau to build a 190MWp PV solar park in Minas Gerais
state. Part of its energy will be provided to Gerdau’s production units, with supply also going to free power consumers.
Scheduled to come online in 2024, the undertaking is part of a batch of projects surpassing 1.4GW under analysis by the sector’s watchdog Aneel.
“We're anxious to understand the decree that the government will issue by the end of the year establishing the regulatory framework for this
activity,” the company’s renewable energy project development manager, Gabriela Oliveira, said, adding that wind power is a possible gateway to
production of green hydrogen.
Shell’s biggest natural gas-fired project underway is the Marlim Azul thermoelectric power plant in Macaé, Rio de Janeiro state, where construction
has advanced 70%. Scheduled to start operating in January 2023, the plant will be fueled by pre-salt gas produced off the Brazilian coast.
Shell sales and gas origination manager, Carolina Bunting, pointed out the company will continue to participate in public gas acquisition calls carried
out by Brazilian state distributors, such as the one that resulted in its first gas supply contract with Pernambuco’s Copergás.
“There's room for more terminals. We've already announced a partnership with Oncorp in Pernambuco, for example,” said Bunting.
The press conference marked the launch of the Shell Energy brand, which will be focused on renewable energy and environmental services like
carbon capture and storage.
The area will help Shell reach its goal of achieving net zero CO2 emissions by 2030, while helping other companies and governments to comply
with the Paris Agreement commitments.
Today, Shell has approximately 6W of renewable energy in its global portfolio, having generated 255TWh in 2020, an amount that it intends to
double by 2030.
“And Brazil will play a key role in this, given the growing demand for electricity, abundant supply of gas and competitive renewable resources, as
well as the prospect of continued opening of the energy market,” Perdigão said.
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