Technology group Wärtsilä will carry out a gas conversion project for Brazilian power utility Termocabo. The project will convert the Termocabo Power Station, located in Cabo de Santo Agostinho, Pernambuco, Brazil, formerly operated using heavy fuel oil (HFO), to natural gas operation.
The
Wärtsilä solution allowed the utility to participate in the 2026 Capacity
Auction, from which they were awarded a 10-year Power Purchase Agreement to
generate 50 MW of power to the national grid.
The order
was booked by Wärtsilä in Q3 2026.
“We are
grateful for the support and technical competence of Wärtsilä that has resulted
in this power purchase agreement extension,” says Dagoberto Chaves, Dir.
Presidente da Brasympe, acionista majoritário da Termocabo. “By
switching from heavy fuel oil to natural gas we are also getting more flexible
power generation, with significantly lower CO2 emissions.”
The project
is being undertaken by Wärtsilä on a full engineering, procurement and
construction (EPC) basis and will involve converting the three existing
Wärtsilä 46 engines from liquid fuel operation to Wärtsilä 50SG gas engine
configuration.
The scope
also includes upgrades to the electrical, automation and auxiliary systems, as
well as project commissioning.
“This will
be Wärtsilä’s fourth gas conversion project here in Brazil, which highlights
our successful track record in enabling more sustainable energy systems. The
solution delivers a reliable and flexible power supply to balance the grid with
the system’s increasing share of renewable energy,” explains Gaston Giani,
Energy Business Director, Region South, Americas at Wärtsilä Energy.
The
Capacity Reserve Auction was introduced in 2021. Based on the Brazilian Energy
Planner authority analysis, and the expansion of renewables, there is a need
for 14 GW of capacity to be installed by 2031.
The
potential intermittency generated by renewable energy sources can be minimised
by using grid balancing flexible power plants hired through the Reserve
Capacity auctions.
The Termocabo project is scheduled to be commissioned in July 2028. -OGN/TradeArabia News Service
