Foxx URE Barueri Waste to Energy Power Plant

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In March 2013, the Brazilian company Foxx URE-BA Ltda, a subsidiary of Foxx Inova Ambiental S. A., was granted the 30-year authorization by the regulatory agency ANEEL to build and operate a urban waste residue fueled power plant located in the municipality of Barueri, state of Sao Paulo (20 MW in total capacity). In 2011, the company had signed a 30-year public-private partnership to build the waste to energy facility with the municipality of Barueri (the power plant was allowed to be built on the municipalities land and to use local solid waste). Foxx-Haztec focuses its activities in waste recovery, renewable energy, and disposal in landfills. The company currently manages 30,000 tons of waste daily, representing 15% of the national market. The total investment committed to project was estimated at US$ 111 million. In May 2015, the IFC granted a loan of US$ 30 million to the project. In addition, the state-owned bank Caixa Economica Federal also granted a US$ 69 million loan to the project. The remaining costs were equity financed. In September 2014, the sponsor signed a 15-year electricity offtake agreement with the distribution company CEMIG. The project company agreed to provide the interconnection of the WtE plant to the electricity grid through an existing transmission line of 88/138 kV and an existing energy substation adjacent to the site. Commercial operation was set to initiate in June 2018. The company was granted the right to take part in the government program called Regime Especial de Incentivos para o Desenvolvimento da Infra-Estrutura (Reidi). Companies selected to take part in this program were given tax cuts in the acquisition of capital equipment and construction material acquired both in the domestic and international markets (this incentive represented a cost reduction of about 9.25%). In addition, the company was allowed to use accelerated depreciation methods of accounting for construction expenditures. In August 2012, the sponsor applied for carbon credits.