Antonio Ruette Agroindustrial Cogeneration Project

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Antonio Ruette Agroindustrial project was a 28 MW bagasse power plant at Paraiso city, Sao Paulo state. The project was a cogeneration plant which agreed to sell 21 of the 28 MW to state owned Eletrobras through a 20-year power purchase contract. The contract was part of the Financial Support Program for Investments in Alternative Sources of Electric Energy (PROINFA). PROINFA was a government sponsored renewable energy program in which wind, biomass, and small hydro projects selected for development were guaranteed 20-year power purchase agreements with federal utility Eletrobras at pre-specified prices and receive access to BNDES financing. The project cost was estimated at US$23 million (67.6 million real). 70% of the cost was financed by a direct loan from Banco Nacional de Desenvolvimento Economico e Social (BNDES) and the remaining 30% by the sponsor. The power plant commenced operations in May 2006.