Shell Aims for Electricity Auctions and Investments in Gas Projects, Solar and Offshore Wind Power Plants in Brazil

Shell Is Set to Heavily Invest in Brazil in Gas, Power, Solar, and Offshore Wind Projects. Currently, the Group Is Developing the Marlim Azul Thermal Power Plant in Macaé (RJ).

In a press conference with journalists held yesterday, April 16, the president of Shell in Brazil, André Araújo, revealed the Anglo-Dutch company’s interest in participating in energy auctions that will be held this year. Additionally, the oil company is also targeting gas, solar, and offshore wind projects. Currently, the group is developing the Marlim Azul thermal power plant in Macaé (RJ).

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Shell Brazil is preparing to start marketing gas contracts in the free market as of January next year, based on the new regulatory framework for the sector, provided that pending issues are resolved.

“It will depend a bit on commercial negotiations as well, but the company’s structure is preparing to deal directly with the consumer starting next year.”

Marlim Azul Thermal Power Plant in Macaé (RJ) Will Be the First Plant to Use Gas from the Pre-Salt Layer

Shell is a partner, along with Pátria Investimentos and Mitsubishi, of the UTE Marlin Azul (RJ – 565 MW), made possible through an auction in 2017. The UTE will be the first plant to use gas from the pre-salt layer. Construction, already underway, began alongside the pandemic and currently employs about 800 workers on-site.

According to the executive, Shell presented its shareholders with a type of ‘council vote’ regarding the energy transition plan. The strategy will be discussed at the ordinary general assembly so that shareholders can also participate in the project review, with a commitment to review the strategy in three years.

Another highlighted point was the immersion in the strategy by the company’s staff, given that there was very strong involvement from employees. “At the same time it was being presented to investors, it was being discussed and analyzed within Shell,” he comments.

Shell Targets Investments in Solar and Offshore Wind Energy in Brazil

Shell Brazil is awaiting the release of grants for solar power plant projects in the states of Minas Gerais and Paraíba. The company is evaluating partnerships for investments and also for the consumer market.

According to Araujo, the projects may have different speeds, as they have clearer solar radiation measurements over longer periods.

Another renewable energy source that Shell is monitoring in Brazil is offshore wind. According to André Araújo, this source is a global priority for the company, which has assets of this kind in the North Sea and the United States.

“We have been discussing whether to prioritize Brazil in the coming years, and we are monitoring the evolution of discussions regarding a regulatory framework and how the government will define this line of business,” said the executive.

Shell Will Dominate the Fuel Market in the Northeast and North After the Sale of RLAM

After Petrobras, Shell is the largest oil producer in Brazil, where it extracts and exports about 400,000 barrels a day of crude oil, exempt from taxes.

It is essential to emphasize that Shell, in partnership with Cosan (50/50), created Raizen in 2011, now the third-largest Brazilian company by revenue and one of the largest global producers of cane ethanol. Cosan, the owner of Rumo Logística, acquired the North-South Railway.