In a bold and visionary initiative, the National Bank for Economic and Social Development (BNDES) announced, in September 2024, the investment of R$3,8 billion for the construction of a thermoelectric plant powered by natural gas.
Certainly, the natural gas-fired power plant UTE Portocem I, managed by Portocem Power Generation SA, was designed to meet the growing demand for sustainable and efficient energy in Brazil. Construction is expected to begin in the first quarter of 2025, with completion expected by the end of 2028. In fact, this project not only strengthens the country's energy infrastructure, but also creates a positive impact in the economy of the North region. In addition, it generates jobs and promotes significant technological advances. Furthermore, it reinforces the Brazil's strategic position in the global energy scenario.
Key points of the project:
- Strategic location in Barcarena, Pará.
- Utilization of natural gas as the main energy source.
- Part of a larger plan for modernize the Brazilian energy sector.
How was the financing structured?
On the other hand, the BNDES played a crucial role in the financial viability of the project. In June 2024, the issuance of infrastructure debentures in the total amount of $ 4,5 billion. Of this total, $ 3,8 billion were subscribed directly by the bank, consolidating the financial support. In this way, the project received a robust and structured financial support.
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What are infrastructure debentures? Infrastructure debentures are debt securities issued by companies to finance highly relevant projects. This model was introduced in Brazil in 2011 and has been widely used to foster sustainable growth in Brazil. So they offer tax advantages for investors and have become a essential tool to enable strategic initiatives such as UTE Portocem I.
The destination of resources
The funds raised will be used in a manner Intelligence to ensure the quality and efficiency of the project. In this context, the following are among the priority areas:
- Large-scale civil works, scheduled to start in February 2025.
- Acquisition of state-of-the-art machinery and equipment, with delivery scheduled for the end of 2026.
- Assembly and installation of advanced systems, from 2027.
- Implementation of sustainable technologies in the production process, which will extend until 2028.
Therefore, this structuring ensures that the project is conducted with high standards of safety, sustainability and efficiency. In addition, the focus on sustainability reinforces Brazil's commitment to a greener future. In this way, the country moves towards a more modern and balanced energy model.
Expected impacts in the North region
The installation of the plant UTE Portocem I promises to generate a significant impact on multiple fronts. Firstly, the initiative should create thousands of direct and indirect jobs during the construction and operation phases. Between 2025 and 2028, companies or economic sectors are expected to generate more than 15 jobs. In addition, the project strengthens the regional energy security. Not only that, but it also contributes to the diversification of the Brazilian energy matrix. Consequently, the North region should observe a substantial economic growth In the next years.
Specific benefits for the North region:
- Reducing energy costs for local industries, starting in 2029.
- Greater attractiveness for new investments in strategic sectors.
- Promotion of natural gas production chain, with a direct impact on the local economy.
Furthermore, modernization of energy infrastructure contributes to the sustainable development of the region. Thus, it attracts new business and strengthens the local competitiveness, creating a more favorable scenario for progress.
What does it mean for Brazil?
Finally, the construction of the UTE Portocem I is more than one simple infrastructure project. In fact, it represents a crucial step towards energy transition in Brazil. This because renewable and sustainable sources are beginning to occupy a larger space on the national scene. Considering a cleaner alternative compared to other fossil sources means using natural gas.
Main impacts on the national scenario:
- Reducing dependency from more polluting energy sources, especially coal, by 2030.
- Expansion of energy infrastructure in a sustainable way and aligned with the goals of the Paris Agreement.
- Significant contribution to the achieving the country's climate goals, scheduled for 2035.
Therefore, the plant plays a role strategic in strengthening energy security of Brazil. In addition, it helps the country to fulfill its environmental commitments, consolidating a more sustainable future for all.
Thus, the investment of the BNDES at UTE Portocem I, announced in September 2024, reinforces the Brazil's commitment to economic development and sustainability. To ensure a clean, efficient and competitive energy future, projects like this are fundamental. With a strategic location, robust financial support and a focus on innovation, the plant promises transform the dynamics of energy sector in the country. In this way, Brazil is heading towards a most modern energy scenario.
And the gas? Where will the gas come from to supply this thermoelectric plant?
Why not use HYDROGEN
The article states: “Use of natural gas as the main energy source.”
But at no time did the journalist take the time to inform the ORIGIN of the gas. Does it come from landfills? Or from an industrial byproduct? Or from an oil/gas field?