Technology group Wärtsilä has partnered with Brazilian energy company Energetica Suape II S.A, majority owned by Grupo Econômico 4M, to conduct a trial using ethanol to generate clean power. Taking place at the Suape II power station in Recife, Brazil, the trial will test the world’s-first ethanol-fueled 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 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 such as 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.

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. The M can operates on methanol, HFO, MDO and liquid biofuels.

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.