Sykue Thermal Power Plant

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The company Sykue Geracao de Energia Ltda, a wholly-owned subsidiary of Sykue Bioenergya, was granted an authorization by the regulatory agency ANEEL to build a 30-MW thermal power plant located in the state of Bahia(municipality of Sao Desiderio). The thermal power plant was set to use grass as fuel. In November 2007, Sykue Geracao de Energia 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. Almost two-thirds of the capacity is set to be sold to Grupo Pao de Acucar, and the rest to the grid. Sykue Geracao de Energia Ltda committed to invest US$ 50 million (BRL 100 million) in the facility. Financial closure for the project was achieved in March 2009, when the company was granted a US$ 44.6 million (BRL 89.2 million) loan contract from BNDES, a state-owned development bank. Operations commenced in November 2010.