LAKE MARY, Fla.--(BUSINESS WIRE)--Jan 7, 2020--

Mitsubishi Hitachi Power Systems Americas (MHPS), Patria Investments, and Shell announced the signing of a contract with Brazil’s State-owned development bank (BNDES) to finance the gas-powered Marlim Azul Energia power plant, in Macaé (Rio de Janeiro State). The loan approved by the bank for the construction of the plant is BRL 2 billion over 24 years.

“The contract with BNDES is an important step in the development of a project that will make a decisive contribution to the consolidation of the new gas market, making the market and prices more competitive. We are making energy generation from Brazilian pre-salt gas a reality,” says Bruno Chevalier, CEO of Marlim Azul Energia.

Formally agreed to in December 2018, the joint venture between Patria, Shell and MHPS includes development of the plant, as well as trading of the energy generated. Patria Investments has a 50.1% stake in the project, while Grupo Shell has 29.9% and MHPS has 20%.

“BNDES’s faith in Marlim Azul reflects the capability demonstrated by Patria over the years in developing solid and efficient assets that have been contributing to the expansion of Brazil’s infrastructure in several segments. For Patria, the energy area is one of the most relevant in Brazil, with a lot of opportunities for private initiatives,” says Otavio Castello Branco, a partner in Patria, and head of investments in infrastructure.

The plant will begin operation in January 2023. The joint venture is investing BRL 2.5 billion (approx. USD 650M) in the construction of the thermoelectric plant, with Shell Brasil Petróleo Ltda supplying the gas. At its peak, construction of the plant will employ around 1,500 people.

“It is a pioneering and competitive project that will enable us to monetize Brazil’s pre-salt natural gas. To do this, we chose partners who share our purpose and our vision of the future. Marlim Azul is the latest indication of our bet on energy transition. Establishing a new value for natural gas and underscoring our production in energy and trading makes this project a milestone in our century of history in Brazil,” says the CEO of Shell Brasil, André Araujo.

The 565 MW Marlim Azul plant is the first of Brazil’s pre-salt gas-powered energy projects to win an auction, offering very attractive electricity prices for consumers. The plant is also the first in Brazil to use the MHPS M501JAC gas turbine, which is the world leader in efficiency and lower carbon emissions. The JAC technology also has high operational flexibility which allows the plant to complement intermittent renewable generation.

“MHPS is proud to be the initial developer and the technology solution provider for the Marlim Azul power project,” said Paul Browning, CEO and President of MHPS Americas. “Our JAC Power Island will efficiently convert domestic pre-salt associated gas into electricity for a growing Brazilian economy. This is a Change in Power.”

About Patria Investments

Patria Investments is the leader in alternative asset management in Latin America, with over 30 years of experience in Private Equity, Infrastructure, Real Estate and Credit. Patria currently has ten offices in some of the world's leading financial centers. Since 2010, Patria has Blackstone, a global leader in alternative investment management, as a relevant partner. Additional information is available at: www.patria.com.

About Shell

A global energy company with 112 years in business and employing about 90,000 people in more than 70 countries, Shell has been in Brazil since 1913, where it employs about 800 people. Our main objective is to serve the energy needs of society today and in the future, operating in a responsible manner economically, environmentally and socially. Shell’s activities in Brazil take in business in Upstream segments – in Exploration and Production, and in Marine. In the Downstream segment, the company also operates in the Lubricant sector. The other businesses, including retail fuel distribution, are managed by the joint venture, Raízen. Shell was the first private company to produce petroleum in the Campos Basin after the market was opened up.

About Mitsubishi Hitachi Power Systems

Mitsubishi Hitachi Power Systems Americas, Inc. (MHPS Americas), headquartered in Lake Mary, FL, employs more than 2,000 power generation and energy storage experts and professionals. Our employees are focused on our customers, and empowering them to affordably and reliably combat climate change while also advancing human prosperity. MHPS Americas’ expertise includes natural gas, steam, aero-derivative, geothermal, and distributed renewable power generation technologies and services, along with renewable hydrogen and battery energy storage systems, environmental control systems solutions, and digital solutions enabling autonomous operations and maintenance of power assets throughout North and South America. MHPS Americas is a subsidiary of Mitsubishi Hitachi Power Systems (MHPS), a joint venture between Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd. integrating their operations in power generation systems.

Learn more about MHPS by visiting  www.changeinpower.com.

Bruna Leone: (+55 11) 4873-7940 / 9.6688-8007bruna.leone@idealhks.com

Rodrigo Fonseca: (+55 11) 4873-7621 / 9.4846-5003rodrigo.fonseca@idealhks.com

Alexandre Teixeira: (+55 11) 4873-7991 / 9.9909-3057alexandre.teixeira@idealhks.com

KEYWORD: UNITED STATES NORTH AMERICA FLORIDA

INDUSTRY KEYWORD: ENERGY OIL/GAS ENVIRONMENT

SOURCE: Mitsubishi Hitachi Power Systems Americas

Copyright Business Wire 2020.

PUB: 01/07/2020 08:00 AM/DISC: 01/07/2020 08:01 AM

Copyright Business Wire 2020.