Brazil Launches the World’s First Major Thermal Power Plant Powered by Ethanol
Brazil is set to host the world’s first major thermal power plant powered by ethanol, in a pilot project led by Savana Holding, aiming to combine energy transition with local economic returns.
The plant will be located at Suape 2 in Pernambuco state in the northeast of the country and is expected to have a long-term production capacity of 600 megawatts, enough to supply electricity to over two million homes.
Initial investment, estimated at 60 million Brazilian reais (about 11.2 million dollars), will enable the launch of an initial phase in partnership with Suape Energia and the Finnish group Wartsila. A 4-megawatt engine is scheduled to be installed by the end of 2025, with testing expected to begin in the first quarter of 2026. This model will consume about six million liters of ethanol over 4,000 hours of operation.
Key Stakeholder Support
The state-owned company Petrobras holds a 20% stake in the capital and contributes to financing, while Wartsila will provide half of the necessary equipment. Suape 2 will handle infrastructure and installation. Savana Holding emphasizes that this project relies on a well-established ethanol sector in Brazil, reducing dependency on imports and contributing to job creation.
According to José Faustino, the technical director of Suape Energia, the test unit will achieve efficiency between 39% and 40%, slightly less than diesel engines (46%-48%), but with the key advantage that carbon dioxide emissions will not exceed 10% of those from traditional fuel engines. The plant will also be able to supply the national grid with electricity in less than half an hour, compared to several hours for fuel oil plants.
Benefits for the Sugarcane Sector
The plant will be supplied with biofuel from Vibra Energia. Faustino explains that the plant’s consumption will remain limited compared to the automotive sector, which will support the sugarcane and ethanol market without creating competition for resources.
Carlos Mansour, Vice President of Savana Holding, believes that the spread of this technology requires regulatory adjustments. Currently, ethanol must go through a distributor before being sold, while establishing mechanisms like capacity auctions and new supply formulas could facilitate market entry and diversify sources for the plants.
