Itaú BBA to Manage Sale of Pioneering Brazilian Gas Power Plant

According to sources, Pátria Investments, Shell, and Mitsubishi Power have hired Itaú BBA to oversee the sale of Marlim Azul. This 565-megawatt gas-fired power plant in Macaé, Rio de Janeiro, began operations in November 2023.

It stands as Brazil’s first thermoelectric plant to run entirely on pre-salt natural gas. The joint venture partners invested $500 million to build Marlim Azul. Pátria holds a 50.1% stake, Shell owns 29.9%, and Mitsubishi Power controls 20%.

Brazil’s development bank BNDES provided $2 billion in financing over 24 years for the project. Marlim Azul won a 2017 energy auction by offering competitive electricity prices.

It uses Mitsubishi’s M501JAC gas turbine, known for high efficiency and low emissions. The plant operates full-time during Brazil’s rainy season from November to May.

The sale comes as Brazil’s energy ministry announced new rules for capacity reserve auctions. These auctions typically guarantee demand for thermoelectric plants. This development makes gas-fired assets more attractive to potential buyers.

Pátria’s exit aligns with its strategy of investing in long-term projects before selling to provide returns. The fate of Shell and Mitsubishi’s stakes remains unclear. Neither company has commented on the reported sale process.

Marlim Azul plays a key role in Brazil’s energy transition plans. It helps monetize pre-salt gas resources while supporting intermittent renewable power. The plant can potentially expand to 651 megawatts in the future.

This sale marks a significant moment for Brazil’s evolving energy landscape. It highlights the country’s push to utilize domestic gas reserves and diversify its power sources. The outcome may influence future investments in similar projects across the nation.