Advertisement Advertisement
Advertisement Advertisement

Albioma to acquire majority stake in Brazilian bagasse co-generation plant

France-headed independent energy producer Albioma SA has announced that it has signed an agreement with the Jalles Machado group, for the acquisition of 60 percent of the bagasse cogeneration plant adjacent to the sugar refinery and distillery of the same name in Goianésia, State of Goiás, Brazil. The agreement, which is subject to certain conditions, represents the fourth investment in Brazil for Albioma and the second with the Jalles Machado group.

According to a statement, the plant has an annual crushing capacity totaling 2.8 million tonnes of sugarcane. The agreement provides for the renovation of the existing boilers as well as the installation of a new 25 MW turbine, bringing the site’s total capacity to 65 MW.

Thanks to the improved return from cogeneration and the reduced consumption of steam at the sugar refinery, the energy exported to the power distribution network should reach 145 GWh per year, from the 2019 campaign, which is near twice the current level.

More than 80 percent of energy sales are already secured on the regulated market. In fact, the cogeneration plant has already ensured long-term contracts and recently sold 75 GWh per year as of 2021 at a price of BRL 258/MWh, linked to inflation, within the latest auction process “leilão de energia nova A-4” on December 18.

Around 60 percent of the investment, the amount of which has not been disclosed, will be financed by long-term financing in local currency. The completion of the transaction remains subject to a number of conditions precedent that should be satisfied by mid-2018 at the earliest.

I am delighted by the renewed confidence of the Jalles Machado group, which reflects the quality of our relationship. This new partnership established two years after the acquisition of Codora Energia, is a real recognition of the expertise of our teams in Brazil. We are in line with our growth objectives in Brazil, where the Group is gradually building a balanced portfolio of high-quality assets thanks to the relevance of its positioning, said Frédéric Moyne, CEO of Albioma.

We're using cookies. Read more