IFC, a member of the World Bank Group, announced the granting of a 15-year loan worth $288m to UTE GNA I Geração de Energia (GNA I) for a liquefied natural gas to power (LNG-to-power) facility in Brazil.
GNA I has secured the loan from IFC for the development, construction and operation of the integrated LNG-to-power facility, which is expected to be located in Porto de Açu, in the State of Rio de Janeiro, Brazil.
The GNA I project is being developed by a joint venture of Prumo Logística, BP and Siemens, named GNA, which is focused on constructing, executing and operating sustainable energy and gas projects.
The GNA I project features a 1.3GW integrated combined cycle gas turbine (CCGT) based-fired power plant, an LNG import marine terminal, a transmission line, and expansion of an existing substation. The project is expected to start commercial operation in 2021.
The company said that the project is built at Port of Açu and the plant would be linked to Brazil’s electrical grid, called the National Interconnected System (SIN).
IFC’s investment in the project is expected to support the diversification of Brazil’s energy matrix. The GNA 1 project will also help in displacing existing coal and carbon based thermal power plants and reduces the carbon footprint in Brazil by an estimated 139 thousand tons of CO2 equivalent emissions annually.
GNA CEO Bernardo Perseke SAID: “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.
“The support of our stakeholders confirms the relevance of our project to the country and our commitment to sustainable development of the local communities.”
Besides the IFC’s US$288m local currency loan, GNA I has secured a financing package of approximately $475m loan from BNDES, planned in a partnership with KfW IPEX-Bank, which is supported by Euler Hermes Aktiengesellschaft, the German Export Credit Agency.
IFC infrastructure department senior manager Lance Crist SAID: “A sustainable energy matrix, resilient throughout seasonal variations, is critical for Brazil’s long-term competitiveness and economic growth.
“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 energy.”