Sao Fernando Thermal Power Plant

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The Brazilian company Sao Fernando Acucar e Alcool Ltda, a 50/50 partnership of the Brazilian groups Bertin e Sao Marcos Energia, was granted an authorization by the regulatory agency ANEEL to build a 48-MW thermal power plant located in the state of Mato Grosso (municipality of Dourados). The cogeneration power plant was set to use sugar cane residues resulting from the ethanol producing unit belonging to the same company as fuel. In February 2009, Sao Fernando Acucar e Alcool Ltda signed a 35-year contract with ANEEL allowing the company to operate in the electricity market as a independent producer. This authorization granted the sponsor with the right to sell electricity in the Brazilian wholesale market. In August 2008, the company took part in a competitive bidding process to sell electricity to the regulated wholesale market (15-year power purchase agreement was signed guaranteeing the sale of electricity to the national grid). In February 2009, the company was granted a US$ 32.3 million (BRL 64.7 million) loan contract from BNDES, a state-owned development bank. The resources from the loan were directed both to the construction of the ethanol producing unit and the cogeneration facility, which had a total cost of approximately US$ 164 million (BRL 328 million). The investment committed solely to the cogeneration power plant was not available. Construction works on this plant were concluded in July 2009. In July 2012, an additional US$ 52 million (BRL 101.5 million) loan was granted by BNDES to the project company.