Jorge Lacerda power station

From Global Energy Monitor

Jorge Lacerda power station (Complexo Termelétrico Jorge Lacerda) is an operating power station of at least 857-megawatts (MW) in Capivari de Baixo, Santa Catarina, Brazil with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Jorge Lacerda power station Capivari de Baixo, Capivari de Baixo, Santa Catarina, Brazil -28.452084, -48.968482 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • Gas unit, Unit 1, Unit 2, Unit 3, Unit 4, Unit 5, Unit 6, Unit 7: -28.452084, -48.968482

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Gas unit Announced[1][2] fossil gas: natural gas[1] 440[1] unknown
Unit 1 Operating coal: bituminous 50 subcritical 1965 2040 (planned)
Unit 2 Operating coal: bituminous 50 subcritical 1967 2040 (planned)
Unit 3 Operating coal: bituminous 66 subcritical 1974 2040 (planned)
Unit 4 Operating coal: bituminous 66 subcritical 1973 2040 (planned)
Unit 5 Operating coal: bituminous 131 subcritical 1979 2040 (planned)
Unit 6 Operating coal: bituminous 131 subcritical 1982 2040 (planned)
Unit 7 Operating coal: bituminous 363 subcritical 1996 2040 (planned)

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
Gas unit Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]
Unit 1 Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]
Unit 2 Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]
Unit 3 Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]
Unit 4 Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]
Unit 5 Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]
Unit 6 Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]
Unit 7 Diamante Geração de Energia Ltda [100%] Diamante Energia [100.0%]

Background

The Jorge Lacerda power station was originally developed by Brazil's federal government in the 1960s. The 857-megawatt complex comprises three distinct power plants with a total of seven units, all fueled by coal mined in the surrounding state of Santa Catarina.[3] The oldest plant, Jorge Lacerda A, consists of two 50 MW units and two 66 MW units. Jorge Lacerda B has two 131 MW units, and Jorge Lacerda C has a single 363 MW unit.[4]

The plant's sponsor is Diamante Geração de Energia[5] and its parent company is FRAM Capital.[6]

Video: Impacts of coal development in southern Brazil (in Portuguese with English subtitles) (Source: Arayara)

Potential CCS plans in the works

In October 2024, reporting indicated that power station owners Eneva and Diamante Energia were investing in research and development for the potential use of Carbon Capture and Storage (CCS) technology at the Jorge Lacerda power station.[7] Initial testing of CCS technology was expected to be completed by June 2025, but the timeline of installing a CCS system at Jorge Lacerda or any of Eneva's other power stations was not publicly known at the time of reporting.[7]

Environmental & Social Impacts

The Jorge Lacerda power station has been identified as the largest emitter of greenhouse gases in the South region of Brazil.[8] The Brazilian environmental group Arayara has thoroughly documented several negative social, health, and environmental impacts caused by the Jorge Lacerda power station, including contamination and depletion of local water supplies and damage to soil, plants, livestock and wildlife caused by the emission of toxic gases and heavy metals such as lead, cadmium, chrome, and mercury.[9]

Extension of Operations through 2040

The Jorge Lacerda plant has benefited from Brazilian government subsidies that allow the plant to sell its power at above-market rates. In January 2022, Brazilian president Jair Bolsonaro signed Law 14.299, which extended these subsidies from their original expiration date of 2027 to 2040.[10][11][12] The new law also called for establishment of a Just Energy Transition plan for southern Brazil's coal-producing regions, to be drafted no later than January 2023 by representatives of Brazil's federal government, the government of Santa Catarina state, and private industry.[12] As of April 2022, the federal government had not yet taken any significant steps towards developing the plan, raising concerns among industry and environmental groups.[13]

In an August 2022 interview with BNAmericas, Diamante Energia's CEO Pedro Litsek confirmed that his company intended to continuing operating the Jorge Lacerda plant through 2040, consuming coal at current levels over the next two decades.[14]

In April 2023, it was reported that a new 440 MW gas-powered unit would be built within the Jorge Lacerda Complex in preparation for the 2040 closure date of coal-fired units, though a timeline for the gas transition was not stated at the time.[15] Until then, the Fair Energy Transition Program legislation would allegedly keep the coal plant afloat by requiring the Ministry of Mines and Energy (Ministério de Minas e Energia or MME) to "sign a contract for the purchase of reserve energy from the coal plant, guaranteeing a fixed income sufficient to cover the costs associated with generation" (Google Translate).[15] At the time of the report, the president of Diamante Geração de Energia had insisted that coal-fired power generation was still the most reliable and "secure" choice for the community, and that carbon capture and storage should be implemented to account for environmentally detrimental effects of coal combustion.[15]

Reporting in late 2023 indicated that planning for the power station's Just Energy Transition Program (JET) was gaining momentum, and that a plan was expected to be approved in the first half of 2024.[16][17] However, following devastating flooding in Rio Grande do Sul in May and April of 2024, senators called for the Just Energy Transition Program Bill 4653 (PL 4653/2023), which had included subsidies to support the coal plant's operation until 2040, to be shelved.[18]

In October 2024, ANEEL approved the price to be set for Jorge Lacerda's coal purchases under the company's Reserve Energy Contract (CER), to begin in January 2025.[19] The agreed-upon price was to be set at R$ 406.38 per tonn of coal.

Proposed energy alternatives

In September 2023, the Jorge Lacerda plant was reportedly under consideration as a potential partner for a nuclear power organization seeking to install small modular reactors (SMRs) at existing coal plants in Brazil.[20] The proposed project would utilize existing coal plant infrastructure to build the SMRs. Presumably, if the SMR plan were to be pursued, the partial conversion would take place after the coal plant's planned retirement in 2040. In the meantime, Diamente Energia appeared to be banking on new natural gas projects and carbon capture technology for its "decarbonization" transition.[21]

Opposition

In March 2022, a coalition of three Brazilian political parties, backed by the environmental group Arayara, filed a Direct Action of Unconstitutionality (ADI) against the Brazilian government, asserting that the plan to extend subsidies to the Jorge Lacerda plant beyond 2025 violates Brazil's National Policy on Climate Change (Federal Law 12,187/2009), the Paris Agreement (enacted by Federal Decree 9.073/2017), and the Federal Constitution. The legal filing cites the Jorge Lacerda plant's negative impacts on climate and public health, especially in relation to populations that are already subject to socioeconomic disadvantages, while noting that the government has not offered guidelines for the reduction of greenhouse gas emissions from the Jorge Lacerda complex.[8]

Transfer of ownership

In 2018 Engie arranged to sell the plant to English firm ContourGlobal but ultimately backed out of the deal in the belief the plant was undervalued.[22] Engie announced in a July 2019 press release that efforts to sell the plant were ongoing,[23] and in September 2019 again confirmed that it was seeking buyers for the plant as part of its plan to decarbonize its energy portfolio.[24]

In a February 2020 teleconference with investors, Engie executive Rafael Bósio reported that the company would register the Jorge Lacerda plant in Brazil's April 30 energy auction, seeking a 15-year contract with the Brazilian government to enhance the plant's appeal to potential buyers.[25] However, the April auction was canceled indefinitely due to the Covid-19 health crisis.[26]

In December 2020, Engie officially announced that it would cease operating the Jorge Lacerda Power Station in accordance with the company's commitment to a coal-free energy portfolio.[27] The company is reportedly studying three divestment scenarios:

  • direct sale of the plant to a private buyer
  • sale of the plant to a Brazilian government entity, or sale to a private company with support from the Brazilian government
  • phased decommissioning of the plant[28]


Under the latter scenario, Units 1 through 4 would be taken offline between 2021 and 2023, while the remaining three units would be retired by December 2025.[29][30]

As of mid-2021, Engie was still in the process of selling the plant.[31] In February 2021 the company signed a 120-day exclusivity agreement with potential buyer FRAM Capital[32], and in June 2021 the agreement was extended for an additional 120 days to allow FRAM Capital to continue its due diligence process.[33]

In mid-October 2021, the sale of the power station to FRAM capital was finalized with Diamante Geração de Energia serving as the operator.[34][6][35]

Articles and Resources

References

  1. 1.0 1.1 1.2 https://web.archive.org/web/20240514183818/https://diamanteenergia.com/comunicado/. Archived from the original on 14 May 2024. {{cite web}}: Missing or empty |title= (help)
  2. https://web.archive.org/web/20240515180551/https://www.engeplus.com.br/noticia/geral/2023/complexo-jorge-lacerda-ganhara-unidade-geradora-de-gas-de-440-mw. Archived from the original on 15 May 2024. {{cite web}}: Missing or empty |title= (help)
  3. Jorge Lacerda Thermal Power Plant Brazil, Global Energy Observatory, accessed November 2019
  4. "Jorge Lacerda Thermoelectric Complex". ENGIE Brasil. Retrieved 2020-12-28.{{cite web}}: CS1 maint: url-status (link)
  5. "Complexo Termelétrico Jorge Lacerda". Diamante Geração de Energia. Retrieved 2023-01-04.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 "Engie conclui a venda do Complexo Termelétrico Jorge Lacerda à Fram Capital". Money Times (in português do Brasil). 2021-10-18. Retrieved 2021-11-19.
  7. 7.0 7.1 Termelétrica a carvão em SC investe em tecnologia para subsistir na transição energética, Tratamento de Água, October 31, 2024
  8. 8.0 8.1 "ADI 7095 (Complexo Termelétrico Jorge Lacerda)". Climate Change Litigation. March 10, 2022.
  9. "The Toxic Legacy of Engie, Diamante & Fram Capital: Map of the Contamination and Destruction Caused by the Jorge Lacerda Thermoelectric Complex and the Coal Mines that Supply it" (PDF). Arayara. October 2021.{{cite web}}: CS1 maint: url-status (link)
  10. "Brazil extends controversial coal power subsidy | Argus Media". Argus Media. January 6, 2022.{{cite web}}: CS1 maint: url-status (link)
  11. "Apoio ao carvão: o Brasil na contramão da História". Fundação Perseu Abramo. January 7, 2022.{{cite web}}: CS1 maint: url-status (link)
  12. 12.0 12.1 "LEI Nº 14.299, DE 5 DE JANEIRO DE 2022". Diário Oficial da União. January 5, 2022.{{cite web}}: CS1 maint: url-status (link)
  13. "Governo não tem data para criar grupo de transição do carvão". Poder360. April 11, 2022.{{cite web}}: CS1 maint: url-status (link)
  14. "A 'transição energética justa' da Diamante Energia no Brasil". Diamante Geração de Energia. August 18, 2022.{{cite web}}: CS1 maint: url-status (link)
  15. 15.0 15.1 15.2 "Diamante Energia mira CCS, fertilizantes e térmicas a gás como alternativas ao carvão". epbr. April 26, 2023.{{cite web}}: CS1 maint: url-status (link)
  16. Entenda o processo de transição energética para fechar usina de carvão em SC até 2040, NSC Total, December 12, 2023
  17. Imprensa de Tubarão é convidada para conhecer Complexo Termelétrico Jorge Lacerda, Portal Insoful, December 11, 2023
  18. PL para subsídio ao carvão mineral no RS é arquivado após agravo da crise climática no estado, Arayara, May 20, 2024
  19. Agência homologa preço do carvão mineral para o complexo termelétrico Jorge Lacerda (SC), Ministério de Minas e Energia, October 22, 2024
  20. Indústria nuclear busca espaço na transição do carvão no Brasil, EPBR, January 29, 2024
  21. Entenda o processo de transição energética para fechar usina de carvão em SC até 2040, NSC Total, December 12, 2023
  22. Latin America: Engie cancels sale to ContourGlobal over price dispute, Inframation Group, Apr. 13, 2018
  23. "Pampa Sul Thermoelectric Power Plant begins commercial operations - ENGIE Brasil". ENGIE Brasil press release. July 9, 2019.
  24. Além da eletricidade, Istoe Dinheiro, Sep. 30, 2019
  25. "Engie aponta contratempos em processo para vender termelétricas a carvão no Brasil". Negócios/Reuters. February 19, 2020.
  26. Sánchez Molina, Pilar (April 1, 2020). "Brazil postpones energy auctions". PV magazine.
  27. "Engie vai deixar de operar termoelétrica a carvão em Santa Catarina - Economia". Estadão. December 16, 2020.{{cite web}}: CS1 maint: url-status (link)
  28. "Engie vai deixar de operar termoelétrica a carvão em Santa Catarina". Terra. December 16, 2020.{{cite web}}: CS1 maint: url-status (link)
  29. "Reunião com ministro de Minas e Energia vai discutir futuro do Complexo Termoelétrico Jorge Lacerda". Engeplus. December 7, 2020.{{cite web}}: CS1 maint: url-status (link)
  30. "Engie admite que pode fechar complexo Jorge Lacerda". Canal Energia. December 11, 2020.{{cite web}}: CS1 maint: url-status (link)
  31. "Engie resumes sale of 345-MW coal-fired plant in Brazil". Renewablesnow.com. Retrieved 2021-06-14.
  32. "ENGIE Signs Exclusivity Agreement For Sale Of Jorge Lacerda Thermoelectric Complex". ENGIE Brasil. February 26, 2021.
  33. "Fato Relevante - Engie Brasil Energia S.A". Terra. June 15, 2021.
  34. "Nova gestão do Complexo Termelétrico Jorge Lacerda projeta expansão e transição energética". Governo de Santa Catarina. October 27, 2021. Retrieved November 19, 2021.{{cite web}}: CS1 maint: url-status (link)
  35. "ENGIE concludes sale of the Jorge Lacerda Thermal Power Complex to FRAM Capital". Engie. October 18, 2021.{{cite web}}: CS1 maint: url-status (link)

Additional data

To access additional data, including interactive maps of the power stations, downloadable datasets, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.