LDC-SEV

active

LDC Bioenergia, a subsidiary of the French company Louis Dreyfus Commodities, entered the business of sugar-cane processing, production of ethanol and thermal electricity generation in 2000, when it started acquiring units already operating in the Brazilian market. As of 2009, LDC held authorizations to operate eight thermal power plants located in the states of Rio Grande do Norte (municipality of Ares), Mato Grosso do Sul (municipalities of Rio Brilhante and Maracaju), Paraiba (municipality of Pedras do Fogo), Minas Gerais (municipality of Lagoa da Prata) and Sao Paulo (municipalities of Jaboticabal and Leme). Of the eight projects, the power plants located in Jaboticabal and Maracaju received authorizations to operate as captive units (supplying power to the sugar cane pressing facilities that belong to LDC), while the other plants received authorizations to operate in the electricity market as independent producers. These authorizations, with 30 or 35 years in length, were issued over the years starting in October 2002. The unit in Ares, also referred to as UTE Estivas, was set to have a capacity of 17 MW; the unit in Rio Brilhante, also referred to as UTE Passa Tempo, was set to have a capacity of 10 MW, while the other unit in Rio Brilhante, LDC Rio Brilhante, would have a capacity of 90 MW; the unit in Pedras do Fogo, also referred to as UTE Giasa II, was set to have a capacity of 30 MW; the unit in Lagoa da Prata was set to have a capacity of 60 MW; and the unit in Leme was set to have a capacity of 42.3 MW. The cogeneration power plants were set to use sugar cane residues as fuel. Energy cogeneration commenced only in 2003, when the power plant in Leme was authorized to begin operations. In 2008, the LDC Rio Brilhante commenced operations. A total of US$ 382.5 million (BRL 700 million) was directed to facilities dedicated to the pressing of sugar cane, producing ethanol and generating electricity. In 2008, UTE Conquista do Pontal, UTE Santa Luzia I and UTE Cacu were able to sign 15-year power purchase agreements guaranteeing the sale of electricity to the national grid. Investment figures solely on the cogeneration facilities were not available. In October 2009, LDC Bioenergia acquired a 60% stake in Santelisa Vale Bioenergia. The operation involved the establishment of a new company, LDC-SEV, to manage the assets of LDC Bioenergia and Santelisa Vale Bioenergia. LDC-SEV became one of the largest companies operating in the business of sugar-cane processing, production of ethanol, and electricity generation. July 2011: investment figures were ESTIMATED based on a price of 1.3 million per MW (average for LAC). In June 2012, the state-owned bank BNDES granted a US$ 31.9 million (BRL 62.2 million) to LDC Bioenergia to finance the expansion of the thermal power plant located in Lagoa da Prata from 40 MW to 85 MW in capacity. The total investment in the expansion was not available. Construction works on this unit were concluded in July 2014. Also in 2012, LDC-SEV changed its name to Biosev S.A. In 2013, UTE Passa Tempo had its capacity expanded additional 74.6 MW. The investment was estimated at US$ 69.2 million (BRL 162.9 million), and the construction works were concluded by November 2013.