São Paulo, April 3, 2019 — 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 project
is being developed by GNA (Gás Natural Açu), which is a joint venture among
Prumo Logística, BP and Siemens, focused on structuring, implementing and
operating sustainable energy and gas projects.
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 per cent 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.
In addition to its role as a highly-efficient and flexible power plant,
GNA I is the stepping stone to the first fully-integrated private natural
gas hub in Brazil and one of only a few in Latin America. The development
of such hub is critical for increasing the competitiveness of Brazil’s
natural gas sector, which has recently been opened to private-sector investment.
“Today is a remarkable day for GNA as we celebrate the signing of IFC´s
financing to the GNA I TPP. We are building and structuring a transformational
project that currently employs 2,500 people, 70% of whom are local residents,
and will contribute to the diversification of the Brazilian energy matrix,”
says Bernardo Perseke, CEO of GNA. The executive adds: "The
support of our stakeholders confirms the relevance of our project to the
country and our commitment to sustainable development of the local communities."
In addition to IFC’s US$ 288 million local currency loan, the financing
package of GNA I includes a BRL 1.76 billion (equivalent to approximately
US$ 475 million) loan from BNDES, structured in a partnership with KfW
IPEX-Bank. KfW IPEX-Bank, in turn, is supported by Euler Hermes Aktiengesellschaft,
the German Export Credit Agency.
“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
GNA I is IFC’s third LNG-to-power investment in Latin America, after AES
Cólon in Panama, and CELSE’s Port of Sergipe in Brazil. LNG-to-power has
been identified as a global strategic aim for IFC in supporting countries
to reduce carbon intensity of power grids, favor further penetration of
renewables, and diversify generation.
IFC—a sister organization of the World Bank and member of the World Bank
Group—is the largest global development institution focused on the private
sector in emerging markets. We work with more than 2,000 businesses worldwide,
using our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In fiscal year 2018, we delivered more
than $23 billion in long-term financing for developing countries, leveraging
the power of the private sector to end extreme poverty and boost shared
prosperity. For more information, visit www.ifc.org
GNA - Gás Natural Açu - is a joint venture formed among Prumo Logística,
BP and Siemens, dedicated to the development, implementation and operation
of sustainable and structuring energy and gas projects. The company is
building, in Porto do Açu, Rio de Janeiro, the largest LNG-to-power complex
in Latin America. Currently, the project includes the development of two
natural gas-fired thermoelectric plants (GNA I and GNA II), which together,
will achieve 3 GW of installed capacity, as well as an LNG regasification