Cosan Ipaussu Biomass Plant

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The company Barra Bioenergia, a wholly-owned subsidiary of the Brazilian group Cosan, was granted the authorization to build and operate a sugar-cane-residue fueled power plant located in the state of Sao Paulo (76 MW in total capacity). The power plant was known as UTE Ipaussu Bioenergia. The 35-year contract was signed with the regulatory agency ANEEL in December 2009 for a 62-MW power plant. In February 2011, ANEEL authorized the expansion of the capacity to 76 MW. The value of the investment committed to the project was estimated at US$ 56.1 million (BRL 91.5 million). In September 2011, the Brazilian state-owned development bank BNDES approved a US$ 22.8 million (BRL 37.2 million) loan to finance the project. The electricity produced was set to be sold under 15-year power purchase agreements signed with electricity distribution companies. Barra Bioenergia was able to arrange these contracts by taking part in a competitive bidding process that occurred in August 2008. Additionally, any energy surplus not sold was set to be negotiated in the free market with purchasers not yet established. Operations commenced in November 2012.