Technology group Wärtsilä has partnered with Brazilian energy company Energetica Suape II S.A, majority owned by Grupo Econômico 4M, to conduct a world-first clean energy trial, which will see ethanol – a biofuel mainly produced from sugarcane – used to generate clean power. Taking place at the Suape II power station in Recife, Brazil, the trial will test the world’s-first ethanol-fuelled engine for large-scale electricity generation. The ethanol demonstration upgrade project was booked by Wärtsilä in Q1 2025.

Brazil is the largest producer and user of ethanol from sugarcane,[1] and this partnership aims to demonstrate the significant potential for this local fuel as a clean power source to customers, authorities, and policymakers.

This partnership was initiated by Carlos Alberto Mansur Filho, shareholder of Grupo Econômico 4M, to generate clean and reliable energy. Having an established partnership with Wärtsilä, Mansur selected Wärtsilä for this opportunity due to their shared focus on innovation and clean energy.

According to the International Energy Agency’s Net Zero Emissions by 2050 (NZE) Scenario, the use of biofuels like ethanol will need to almost double by 2030 globally, from generating about 700 TWh of electricity (2.4% of total generation) in 2023 to around 1 250 TWh (3.2% of total generation) in 2030. Bioenergy can provide dispatchable, low-emissions power to complement generation from variable renewable energy sources.[2]

The trial underscores Wärtsilä’s dedication to creating future-proof engines which can run on a variety of sustainable fuels and enable the energy transition at the lowest cost and emissions. It is part of the WISE (Wide and Intelligent Sustainable Energy) programme, led by Wärtsilä and co-funded by Business Finland, the official Finnish government agency for trade, investment promotion and innovation funding.

“Brazil is a world leader in ethanol production, but its potential use in electricity generation has up to now been overlooked. This project aims to change that by delivering thousands of hours of testing, which we hope will demonstrate the role that ethanol could play in Brazil’s future power system. It has been made possible thanks to our strong partnership with Wärtsilä and the important backing of Business Finland”, highlights José Faustino Cândido, Chief Technology Officer at Energetica Suape II S.A.

“The Brazilian federal government has taken the first step by including ethanol as an authorised fuel in the upcoming 2025 reserve energy capacity auction. Given that ethanol is a unique, locally available biofuel, the Brazilian government would benefit from ensuring that ethanol-based power plants would be part of the approved power generation technologies for the country. By including flexible and sustainable solutions, the country can provide affordable and reliable energy to the people of Brazil”, says shareholder of Grupo Econômico 4M, Carlos Alberto Mansur Filho.

As part of the agreement, Wärtsilä will operate up to 4,000 hours of tests on the Wärtsilä 32M engine over two years from April 2026, to ensure the most reliable and efficient operation. It could be the first step in a significant movement towards using ethanol as an energy fuel in the country, and the federal government has included ethanol as fuel option in its upcoming capacity auction, which takes place in June 2025.

“This initiative could be a game-changer in advancing sustainable energy solutions and shaping the future of clean power generation in Brazil, reducing greenhouse gas emissions, and decreasing dependence on fossil fuel imports. Ethanol could also play an important role in the decarbonisation of the electricity sector, as it is readily available today and can be easily transported globally, making it a truly accessible and scalable solution”, says Anders Lindberg, President, Wärtsilä Energy.

Wärtsilä will operate and maintain the engine under an Operation and Maintenance (O&M) Agreement with Energetica Suape II S.A. The agreement was booked in Q4, 2024. The two-year renewal will ensure supply reliability and performance guarantees throughout the customer’s current power purchase agreement (PPA), which runs until the end of 2026.