Cevasa Thermal Power Plant

active

The Brazilian company Central Energetica Vale do Sapucai Ltda, a partnership of the American company Cargill (63%)and the Brazilian company Canagril - Cana Agricola Ltda (37%), was granted the authorization to build and operate a sugar-cane-residue(bagasse) fueled power plants located in the state of Sao Paulo (initially, the company constructed a captive unit with 16 MW; this newer authorization was granted to expand its capacity to 54 MW so that the company would have excess capacity to supply the electricity market). The 30-year contract was signed with the regulatory agency ANEEL in February 2008 and the project was named UTE Cevasa. The value of the investment committed to UTE Cevasa was not available. The government periodically runs public bidding for the sale of energy to the country´s distribution companies. The UTE Cevasa won the public bidding that took place in 2010, by offering an average tariff of US$ 82.4/MWh (BRL 145/MWh). The project company signed 15-year power purchase agreements with the several electricity distribution companies. UTE Cevasa committed to start supplying to the market in 2010, and commenced comercial operation in December 2010. In 2009, the company applied for carbon credits.