Technology group Wärtsilä has teamed up with Brazilian energy company Energetica Suape II S.A., which is majority-owned by Grupo Econômico 4M, to launch a groundbreaking clean energy trial. The project will involve using ethanol – a biofuel primarily produced from sugarcane – to generate clean electricity. This trial, taking place at the Suape II power station in Recife, Brazil, will test the world’s first ethanol-fueled engine designed for large-scale electricity generation. The ethanol demonstration upgrade project is set to be initiated by Wärtsilä in Q1 2025.
As the largest producer and consumer of ethanol derived from sugarcane, Brazil is at the forefront of this initiative. The partnership aims to showcase the significant potential of locally produced ethanol as a clean power source to customers, regulators, and policymakers.
This collaboration was initiated by Carlos Alberto Mansur Filho, a shareholder of Grupo Econômico 4M, with the goal of generating clean and reliable energy. With an established relationship with Wärtsilä, Mansur selected the company for this opportunity because of their shared commitment to innovation and clean energy solutions.
According to the International Energy Agency’s Net Zero Emissions by 2050 (NZE) Scenario, global biofuel use, including ethanol, must nearly double by 2030 to meet the growing demand for low-emission, dispatchable power. The share of biofuels in global electricity generation is expected to rise from 2.4% in 2023 to approximately 3.2% by 2030. Bioenergy, including ethanol, can complement variable renewable energy sources, providing reliable and low-emissions power.
This trial is a demonstration of Wärtsilä’s commitment to creating flexible, future-proof engines capable of running on a variety of sustainable fuels, facilitating the energy transition at the lowest cost and with minimal emissions. It is part of the WISE (Wide and Intelligent Sustainable Energy) program, which is led by Wärtsilä and co-funded by Business Finland, Finland’s official agency for trade, investment promotion, and innovation.
José Faustino Cândido, Chief Technology Officer at Energetica Suape II S.A., commented, “Brazil is a global leader in ethanol production, but its potential for electricity generation has largely been overlooked. This project aims to change that, providing thousands of hours of testing to demonstrate ethanol’s role in Brazil’s future power system. This effort is made possible by our strong partnership with Wärtsilä and the support from Business Finland.”
Carlos Alberto Mansur Filho, a shareholder of Grupo Econômico 4M, added, “The Brazilian government has taken a significant step by including ethanol as an authorized fuel in the upcoming 2025 reserve energy capacity auction. Given ethanol’s status as a unique, locally available biofuel, the Brazilian government should ensure that ethanol-based power plants are included in the approved power generation technologies. By integrating flexible and sustainable solutions, Brazil can offer affordable and reliable energy to its people.”
Under the agreement, Wärtsilä will operate up to 4,000 hours of testing on the Wärtsilä 32M engine over a two-year period starting in April 2026 to ensure optimal performance and reliability. This trial could mark the beginning of a larger movement toward using ethanol as an energy source in Brazil. The federal government has already included ethanol as an option in its upcoming capacity auction scheduled for June 2025.
Anders Lindberg, President of Wärtsilä Energy, said, “This initiative could be transformative in advancing sustainable energy solutions and shaping the future of clean power generation in Brazil. It has the potential to reduce greenhouse gas emissions and decrease reliance on fossil fuel imports. Ethanol is a readily available and easily transportable solution that can contribute significantly to decarbonizing the electricity sector, offering a scalable and accessible alternative.”
Wärtsilä will operate and maintain the engine under an Operation and Maintenance (O&M) Agreement with Energetica Suape II S.A., which was booked in Q4 2024. The agreement will be renewed for two years, ensuring supply reliability and performance guarantees throughout the customer’s current power purchase agreement (PPA), which runs until the end of 2026.
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