Wärtsilä gas conversion secures 10-year power contract in Brazil

Technology group Wärtsilä will carry out a gas conversion project for Brazilian power utility Termocabo S.A. 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.

Media contact for more information on this release:

Katri Pehkonen
Communications Manager
Wärtsilä Energy
Mob: +358 50 591 6180
[email protected]

Image caption: Wärtsilä will carry out a gas conversion project for Brazilian power utility Termocabo S.A. © Wärtsilä

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Wärtsilä Energy in brief
Wärtsilä Energy is at the forefront of the transition towards a 100% renewable energy future. We help our customers and the power sector to accelerate their decarbonisation journeys through our market-leading technologies and power system expertise. Our solutions include flexible engine power plants and services for the whole lifecycle of our installations. Our engines are future-proof and can run on sustainable fuels. Our track record comprises 81 GW of power plant capacity in 180 countries around the world. About 35% of our operating installed base is under service agreements.
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Wärtsilä in brief
Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy industries. We emphasise innovation in sustainable technology and services to help our customers continuously improve environmental and economic performance. Our dedicated and passionate team of 17,900 professionals in 199 locations in 78 countries shape the decarbonisation transformation of our industries across the globe. In 2025, Wärtsilä’s net sales totalled EUR 6.2 billion. Wärtsilä is listed on Nasdaq Helsinki.
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