Energy solutions firm Aggreko's first flare-gas power generator in Brazil has started operations in Espirito Santo state.
The 1.1MW-capacity plant will supply electricity to an oil field.
It uses gases that would be discardedand burned to generate electricity. Operators of oil fields far from regional power substations can use such systems to guard against blackouts, Aggreko said.
The company plans to sell any surplus generation to the free market at the spot power price (PLD). Aggreko also says it is possible to structure a project like this to participate in a governmental power tender.
The company sees larger potential for flare gas projects to supply isolated fields where there is excess gas but limited connection with the national electricity grid. That generation also allows for carbon credit issuance, which could create a secondary stream of revenue for these fields.
Aggreko is not the first company in Brazil to launch a flare gas generation project. State-controlled Petrobras planned to start 11 flare gas recovery units in 2022 to reduce its methane emissions.
