Brazil's US$1.5bn Porto de Sergipe thermo clears permit hurdle

Brazilian developer Celse said on Tuesday it received an environmental permit for its 1.55GW Porto de Sergipe I thermoelectric plant, Latin America's largest gas-fired power generation project.

The license, issued by Sergipe state's environmental watchdog Adema, means the project remains on track to be completed in January 2020, CEO Eduardo Maranhão said.

"The approval of this permit is an important milestone to guarantee the continuation of the project and the commitment we made to generate energy starting in January 2020," Maranhão said.

Located in Barra dos Coqueiros in Brazil's northeast, Porto do Sergipe I will require expected investment of 5bn reais (US$1.5bn).

Celse, a joint venture between EBrasil Energia and Golar Power, sold future electricity from the plant at a regulated market auction in 2015.

The project also includes an associated 33km transmission line, an LNG floating storage and regasification unit (FSRU) and a submarine gas pipeline.