IFC invests US$ 288 million in GNA I thermal power plant to support the diversification of Brazil’s energy supply

IFC, a member of the World Bank Group, is providing a US$288 million 15-year loan to UTE GNA I Geração de Energia (GNA I) for the development, construction and operation of an integrated liquefied natural gas to power (LNG-to-power) facility in Porto de Açu, in the State of Rio de Janeiro, Brazil.

The GNA I project, expected to start commercial operation in 2021, consists of an integrated 1.3 GW combined cycle gas turbine (CCGT) based-fired power plant, an LNG import marine terminal, a transmission line, and the expansion of an existing substation. The plant will be linked to Brazil’s electrical grid, called the National Interconnected System (SIN, for its acronym in Portuguese). The project is part of the largest LNG-to-power complex in Latin America and is being built by GNA at Port of Açu.

IFC’s investment in GNA I will support the diversification of Brazil’s energy matrix, enhancing system resilience, promoting energy security, and contributing to reliable and affordable energy. With a best-in-class efficiency rating, GNA I will also displace coal and other carbon intensive thermal power plants, thereby reducing Brazil’s carbon footprint by an estimated 139 thousand tons of CO2 equivalent emissions annually.

Hydropower plants account for approximately 70 percent of Brazil’s installed generation capacity, and long droughts in recent years have highlighted the need for a more flexible and reliable mix of energy generation sources. GNA I is designed to dispatch the plant during the dry season and when the system needs it the most, allowing for the replenishment of the hydro reservoirs while promoting further penetration of renewable sources of energy such as solar and wind.

“A sustainable energy matrix, resilient throughout seasonal variations, is critical for Brazil’s long-term competitiveness and economic growth, said Lance Crist, senior manager in IFC’s infrastructure department. “IFC views LNG- to-power as a global strategic priority in supporting countries to access and integrate with global energy markets while reducing carbon intensity of power grids, and favoring further penetration of renewable energy.”

Original source: IFC
Published on 03 April 2019