Bioenergia Cogeradora

Active

Prospective

The Brazilian company Bioenergia Cogeradora S.A, a wholly-owned subsidiary of Grupo Balbo, was granted two authorizations to build two thermal power plants located in the municipality of Sertaozinho, state of Sao Paulo (46.3 MW in total capacity). The cogeneration power plants were set to use sugar cane residues resulting from the sugar-cane pressing and ethanol producing units belonging to the company as fuel. The 35-year authorization contracts were signed with the federal regulatory agency ANEEL in October 2001, allowing the company to operate in the electricity market as a independent producer. These authorizations granted the sponsor with the right to sell electricity in the Brazilian wholesale market. The Santo Antonio Power Plant was set to have a capacity of 23 MW, while the Sao Francisco Plant was initially set to have a total capacity of 7 MW, but it was later expanded to 23.3 MW. Construction works on both plants started in 2006, and the units became operational in 2007. The initial investment on the power plants (23-MW for Santo Antonio and 7 MW for Sao Francisco) was estimated at US$ 10.7 million (BRL 21 million). This investment reached financial closure in 2001, when BNDES (Brazilian Development Bank) financed 80% of this value. The expansion works on the Sao Francisco unit commenced in 2008. This expansion was necessary so that the unit could start selling electricity in the wholesale market. The total investment committed on this expansion was US$ 31 million (BRL 62 million). Financial closure was only achieved in October 2009, when a US$ 25 million (BRL 50 million) financing contract was signed with BNDES (syndicated loans released through Banco Itau and Banco Bradesco). The expansion works were expected to be concluded by 2010. Most of the power generated was set to sell electricity to the national grid. The Santo Antonio power plant established supply contracts with CPFL, while the Sao Francisco plant signed a power purchase agreement with Grupo. Missing sponsor name

Energy

Brazil

High

World Bank Group

Project

Commercial, Geothermal, Power Generation (CCGT), Government