Wärtsilä completes power projects in Brazil

Wärtsilä demonstrated its engineering, procurement and construction (EPC) capabilities with three recent project deliveries to Brazil which were successfully completed in record time. The orders were placed in the fourth quarter of 2021 by Tevisa, Linhares Geração, and Povoação Energia, companies held by funds managed by BTG Pactual Asset Management.

Wärtsilä recently cpmpleted three engineering, procurement and construction (EPC) contracts in Brazil. (Photo: Wärtsilä)

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 that 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 eight months.

Construction of the buildings until commissioning took just three months, the equipment was delivered in in the second quarter of 2022 and all three plants were in commercial operation by July. The electricity produced by these power plants will be fed to the national grid.

“We are extremely pleased with Wärtsilä’s efficiency and reliability in having everything completed on time, despite the exceptionally tight schedule,” said Marcelo Oliveira, CEO at Tevisa, Linhares Geração and Povoação Energia. “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.”

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 utilize Wärtsilä 34SG gas engines, 16 engines in total with a combined output of approximately 150 MW, sufficient to provide electricity to some 280,000 households in the region.

“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 difficulties Wärtsilä encountered were shipping congestion issues resulting from logistic holdups, the COVID-19 pandemic and the war in Ukraine that affected material availability. The company said it addressed those challenges by specifically chartering a vessel to deliver equipment and materials and using a significant number of air freight deliveries to ensure everything was onsite when needed.

To date, Wärtsilä said its record of EPC deliveries comprises 551 power plants in 109 countries with a total output close to 21,720 MW.

Wärtsilä said it 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-fueled capacity in the country to run on natural gas.