Technology group Wärtsilä has teamed up with Brazilian energy company Energetica Suape II S.A., majority-owned by Grupo Econômico 4M, to conduct a groundbreaking clean energy trial using ethanol – a biofuel primarily produced from sugarcane – to generate power. The trial, set to take place at the Suape II power station in Recife, Brazil, will test the world’s first ethanol-fueled engine for large-scale electricity generation. Wärtsilä booked the ethanol demonstration upgrade project in Q1 2025.
Brazil, the world’s largest producer and consumer of ethanol from sugarcane, is at the heart of this pioneering effort, which aims to showcase the potential of local biofuels as a sustainable energy source for customers, authorities, and policymakers.
The partnership was initiated by Carlos Alberto Mansur Filho, shareholder of Grupo Econômico 4M, who sought to generate reliable, clean energy. Having an established collaboration with Wärtsilä, Mansur selected the company for this project due to their shared focus on innovation and clean energy solutions.
The International Energy Agency’s Net Zero Emissions by 2050 (NZE) scenario highlights the increasing role of biofuels like ethanol, projecting the global use of biofuels will nearly double by 2030. Ethanol is seen as a viable option for providing dispatchable, low-emissions power to complement renewable energy sources.
This trial demonstrates Wärtsilä’s commitment to developing future-proof engines that can operate on a variety of sustainable fuels, enabling a cost-effective and low-emission energy transition. It is part of Wärtsilä’s WISE (Wide and Intelligent Sustainable Energy) program, co-funded by Business Finland, the Finnish government’s trade and innovation agency.
“Brazil is a world leader in ethanol production, but its potential for electricity generation has not been fully explored,” said José Faustino Cândido, Chief Technology Officer at Energetica Suape II S.A. “This project is an important step in demonstrating how ethanol can play a crucial role in Brazil’s energy future, supported by Wärtsilä and Business Finland.”
The Brazilian federal government has already taken steps to support ethanol-based power generation by including it as an authorized fuel in the 2025 reserve energy capacity auction. Carlos Alberto Mansur Filho emphasized that ethanol, as a locally available biofuel, could provide the country with affordable and sustainable energy options.
Under the agreement, Wärtsilä will operate up to 4,000 hours of testing on the Wärtsilä 32M engine over two years, starting in April 2026. This trial could mark a significant shift toward using ethanol as a mainstream energy fuel in Brazil. The Brazilian government’s inclusion of ethanol as a fuel option in the upcoming capacity auction in June 2025 highlights its growing importance.
“This initiative could be a game-changer for sustainable energy solutions in Brazil, reducing greenhouse gas emissions and decreasing reliance on fossil fuel imports,” said Anders Lindberg, President of Wärtsilä Energy. “Ethanol is readily available and transportable, making it a scalable and accessible solution for decarbonizing the electricity sector.”
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’s two-year renewal will ensure the engine’s reliable performance through the customer’s existing power purchase agreement (PPA), which runs until 2026.