Why two Brazil thermal projects are under environmental pressure

Two thermoelectric projects totaling more than 2.3GW in Brazil are in the middle of environmental controversies. 

In Maranhão state, the public prosecutor's office (MPF) has filed a civil suit requiring Geradora de Energia do Maranhão (Gera Maranhão) to stop the installation of the Geramar III plant in São Luís municipality. 

The MPF also requested that environmental licensing authority Ibama suspend the preliminary license for the undertaking, due to irregularities in the licensing process.

According to the lawsuit, São Luís denied a land use and occupation certificate for the project in industrial zone 2-ZI2 of the industrial district, where the installation of thermoelectric plants is prohibited. 

With capacity of 1,783MW, one of the largest in the country, and powered by natural gas, the project exceeds air pollution limits as determined by national environmental authority Conama, as per data provided by the company and validated by Ibama.

In addition, São Luís’ urbanism and housing secretariat (Semurh) said the project is located in a valley bottom area, intended for aquifer recharge, reserved for sustainable use and not for potentially polluting activities. 

“Therefore, the installation of the thermoelectric plant in this location could cause damage not only to the ecosystem but also to the inhabitants of Vila Maranhão region and to several existing communities in the rural area of São Luís,” the MPF said in a statement. 

In Rio de Janeiro, the four floating thermal plants of Karpowership contracted during the simplified competitive procedure in October 2021 have no environmental impact study, despite their high polluting potential, according to local news outlet G1.

The Turkish company also plans to install the Karkey I (255MW) and II (115MW), and Porsud I (115MW) and II (75MW) units on barges in Sepetiba bay. 

These units would be supplied by a gas storage and regasification vessel. The liquid gas delivered by other vessels would be converted to gaseous form before being distributed.

In addition to the power plants, 36 transmission towers are also being planned, seven of which would have to be sunk into the seabed.

Ricardo Baitelo, project coordinator at energy and environmental NGO IEMA, highlighted that thermoelectric plants are already operating near Sepetiba bay, so the Karpowership owners would have to explain how air quality would be affected.

Regarding the Maranhão undertaking, he said the technical studies required in the licensing process suggest the installation of the plant, when added to other existing polluting sources in the region, will cause nitrogen dioxide concentrations above WHO recommendations. 

“It is worth pointing out that Maranhão state has no air quality monitoring station whose data are publicly available, which keeps society in the dark about this problem,” he told BNamericas. 

When contacted by BNamericas, BTG Pactual, which owns an investment fund that holds 25% of Gera Maranhão, declined to comment on the matter. 

And commenting on its project, Karpowership said in a statement sent to BNamericas that it “follows all the requests and requirements of the environmental licensing body, Inea, which has ample autonomy to decide on the progress of this licensing process.”

It also said it implements its projects by ensuring environmental protection and that the floating units leave a smaller environmental footprint than plants on land.