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Wärtsilä completes three EPC projects to Brazil in record time – enables customer to meet vital power supply commitment

Oct 19, 2022, 14:00 by Wärtsilä Corporation

The technology group Wärtsilä’s engineering, procurement and construction (EPC) capabilities have been clearly demonstrated with three recent project deliveries to Brazil, which were successfully completed in record time. The orders were placed in Q4, 2021 by TEVISA, Linhares Geração, and Povoação Energia, companies held by funds managed by BTG Pactual Asset Management.

The urgency for completion was the result of the need to meet the required Commercial Operation Date of the power plants as set by the rules of the Reserve Capacity Auction, which was arranged by Brazil’s Ministry of Mines and Energy in October 2021. From contract signing to commencement of commercial operation, the time normally required for each project would be approximately 14 months. In this case, however, Wärtsilä completed all three projects in less than 8 months. Construction of the buildings until commissioning took just three months, and although the equipment was delivered in Q2/2022, all three plants were already in commercial operation by July 2022.

Thanks to Wärtsilä’s ability to meet the strict deadline requirements, the customer has been able to meet fully the Power Purchase Agreement requirements by the Brazilian energy authorities. The electricity produced by these power plants will be fed to the national grid, thereby assuring system reliability.

“We are extremely pleased with Wärtsilä’s efficiency and reliability in having everything completed on time, despite the exceptionally tight schedule. They overcame all the many challenges involved and, in partnership with our team, performed a first-class job. Their reputation in Brazil for being a reliable partner with outstanding EPC capabilities, is well earned,” said Marcelo Oliveira, CEO at TEVISA, Linhares Geração and Povoação Energia.

“Completing these projects within the necessary time-frame required all our experience and know-how. Our existing strong presence in Brazil and understanding of the local needs and practices was of essence in making the fast-track deliveries a success. We utilised increased manpower and extra construction equipment on the sites, and worked in two shifts seven days a week. I think we have sent another clear message to the energy sector regarding Wärtsilä’s capabilities,” commented Jorge Alcaide, Director, Americas South, Wärtsilä Energy.

Among the many difficulties encountered were shipping congestion difficulties resulting from logistic hold-ups and the Covid 19 pandemic, and the war in Ukraine which affected material availability. Wärtsilä was able to meet these challenges, for example, by specifically chartering a vessel to deliver equipment and materials, and using a significant number of air freight deliveries to ensure everything was on site when needed.

The three power plants are part of three separate projects, all in the state of Espirito. The UTE Luiz Oscar Rodrigues de Melo plant and the UTE Povoaҫӑo1 plant are both located in the city Linhares, and the UTE Viana 1 plant in the city of Viana. All three projects feature Wärtsilä 34SG gas engines, in total 16 engines with a combined output of approximately 150 MW, sufficient to provide electricity to some 280,000 households in the region.

To date, Wärtsilä’s track record of EPC deliveries comprises 551 power plants in 109 countries. Their total output is close to 21,720 MW. For each project, specific needs must be met, as well as compliance with regulations, concern for the environment, and the well-being of the local communities affected. Wärtsilä has developed a flexible approach to the varying demands, providing the customer with a single point of contact to ensure efficient project management, while making full use of the latest digital technologies and information systems.

Wärtsilä has been present in Brazil since 1990 and has operations in Rio de Janeiro and Manaus. To date, Wärtsilä has delivered 2.9 GW of power plant capacity in Brazil, of which over 700 MW are currently covered by Wärtsilä long-term service agreements. Wärtsilä has also converted 275 MW of oil-fuelled capacity in the country to run on natural gas.

Learn more:

Wärtsilä engine power plants
Article about Wärtsilä's other recent activities in Brazil: Gas conversions accelerate Brazil’s journey towards decarbonisation


Media contact for more information on this release:

Mirja-Maija Santala
Manager, Marketing & Communications
Wärtsilä Energy
Mob: +358 400 793 827

mirja-maija.santala@wartsila.com

Image1 UTE Povoaҫӑo 1 power plant in Linhares ©Wärtsilä Corporation
Image2
UTE Luiz Oscar Rodrigues de Melo power plant in Linhares ©Wärtsilä Corporation
Image3
UTE Viana 1 power plant in Viana ©Wärtsilä Corporation

 

All Wärtsilä releases are available at https://www.wartsila.com/media/news-releases and at http://news.cision.com/wartsila-corporation where also the images can be downloaded.

Wärtsilä Energy in brief
Wärtsilä Energy leads the transition towards a 100% renewable energy future. We help our customers in decarbonisation by developing market-leading technologies. These cover future-fuel enabled balancing power plants, hybrid solutions, energy storage and optimisation technology, including the GEMS energy management platform. Wärtsilä Energy’s lifecycle services are designed to increase efficiency, promote reliability and guarantee operational performance. Our track record comprises 76 GW of power plant capacity and 110 energy storage systems delivered to 180 countries around the world. 
https://www.wartsila.com/energy

Wärtsilä in brief
Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. We emphasise innovation in sustainable technology and services to help our customers continuously improve their environmental and economic performance. Our dedicated and passionate team of 17,000 professionals in more than 200 locations in 68 countries shape the decarbonisation transformation of our industries across the globe. In 2021, Wärtsilä’s net sales totalled EUR 4.8 billion. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com

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