President Hideo Sato

In the 24th installment of this series, we spoke with Hideo Sato (49), president of TS Participações S.A. (TS), the parent company of TSE, a Brazilian corporation invested in by Toyo Engineering Corporation (TOYO).

Brazil has abundant natural resources and continues to experience steady economic growth due to expanding domestic demand. By carrying out EPC work that covers everything from the design, procurement of equipment and materials to construction of onshore and offshore facilities for oil and gas, petrochemicals, chemicals, and infrastructure, the company is contributing to the growth of the Brazilian economy and is also looking to expand its business to other South American and West African countries in the future.

Brazil's unique position in global expansion

TSE company logo

TS is a holding company established in 2012 as a joint venture between TOYO and a major Brazilian engineering company with the aim of further strengthening its business in Brazil. Under its umbrella are 100% subsidiaries TSE, which handles onshore facilities, and Estareiros do Brasil, which handles offshore facilities such as FPSOs (floating production, storage and offloading facilities for oil and natural gas at sea).

Since entering Brazil in 1965, TOYO has been involved in a number of large-scale projects, starting with providing its own technology for a urea fertilizer plant to Petrobras in Camacari, Bahia, and including the EPC for the Mataripe Refinery (RLAM) in Bahia in 1996. As an extension of these projects, TS was established under a management strategy to expand and enhance the network of EPC bases rooted locally, based on the Brazilian government's policies of "increasing the domestic production ratio" and "promoting technology transfer."

Petrobras refinery (Sao Paulo State) for which TOYO provided EPC

TOYO currently has bases in 11 countries and is conducting business worldwide. A distinctive feature of its global operations is that each base is independent and rooted in its own country or region, and they cooperate with each other by utilizing their respective strengths. For example, TOYO's business is carried out through collaboration between each base, such as design in Japan and India, and equipment procurement in the United States and EU. In this context, Brazil is in a unique position in that, while it receives support from other bases, it independently completes almost all EPC processes in a single country.

Towards further development of Brazilian industry and promotion of decarbonization

The main projects that the company is currently working on with the aim of further developing Brazil's industry and promoting decarbonization are as follows:

• Brazil relies on hydroelectric power and other renewable energy sources for the majority of its power sources, and these thermal power plants (Santo Antonio do Lopez, Maranhão state and Barcarena, Para state) aim to ensure a stable supply of electricity without being affected by the natural environment. By adding steam turbines and heat recovery boilers, they have improved power generation and efficiency, which has also led to reduced CO2 emissions.

• Diesel fuel desulfurization equipment to reduce the environmental impact of combustion gases (Paulinia, São Paulo)

• Natural gas refining facility, positioned as a clean energy source with low environmental impact (Itaborai, Rio de Janeiro)

• Engineering, procurement and construction of an FPSO topside module using yard facilities for the offshore Presal oil field (Rio Grande, Rio Grande do Sul)

FPSO (Floating Production Storage and Offloading)

The company's technical capabilities, ability to meet delivery deadlines, and cost management have been highly praised by Petrobras, and the company has earned the trust of Petrobras and many other companies in Brazil.

New possibilities for ammonia

Brazil aims to reduce greenhouse gas emissions by 50% by 2030 and become carbon neutral by 2050.

Ammonia, which does not emit carbon dioxide when burned, is one of the clean fuels that is expected to become the next generation of energy. Ammonia has been used as a fertilizer for 100 years, and TOYO has a track record of 87 ammonia plants and over 48 storage tank projects around the world.

Fertilizer (ammonia and urea) plants also contribute to food production and next-generation energy

In Brazil, the company aims to "contribute to the sustainability of the earth and society through engineering" by developing new technologies and businesses in next-generation energy sources such as hydrogen, ammonia, SAF (sustainable aviation fuel), and methanol, as well as in circular and low-environmental-impact fields.

Contributing to the development of young engineers

TOYO's global workforce, excluding Brazil, is around 5,500 people, mostly engineers, while in Brazil, TS directly employs around 8,000 people, including those working on construction sites. The company is also working on technology transfer to Brazil and human resource development to raise the overall level of the industry. It is particularly focused on new graduate engineers, offering a trainee program for them to work on projects, just like in Japan, and its student internship program, which has been running for the past 10 years, has been well-received and attracts many applications.

*This article is reprinted from the Brazil Nippo (March 16, 2024).

© 2024 Tomoko Oura