Tropical Bioenergia Thermal Power Plant

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The Brazilian company Tropical Bioenergia S.A., a 50/50 partnership of the Brazilian companies Maeda (25%) and LDC-SEV Bioenergia (25%), and the British group BP (50%), was granted the authorization to build and operate a 15-MW sugar-cane-residue fueled power plant located in the state of Goias. The 30-year contract was signed with the regulatory agency ANEEL in April 2009, and it authorized the power plant to operate as a captive unit. In September 2011, BP acquired full ownership control, investing US$ 71 million in the acquisition of the shares that belonged to the Brazilian companies. In July 2012, Tropical Bioenergia received the authorization to expand it capacity to 55 MW and to start supplying the electricity market. The power plant was named UTE Tropical Bioenergia. The first unit of UTE Tropical Bioenergia commenced operations in November 2009, but its expansion was set to commence commercial operation in September 2013. The expansion was required because UTE Tropical Bioenergia won the public bidding for the sale of electricity to the regulated market that took place in 2011, by offering an average tariff of US$ 58.2/MWh (BRL 95 /MWh). The project company signed 20-year power purchase agreements with the several electricity distribution companies. UTE Tropical Bioenergia committed to start supplying to the market in 2014. The value of the investment committed the expansion of the power plant was estimated at US$ 53 million (BRL 104.70 million). In August 2014, UTE Tropical Bionergia received the authorization to expand its capacity to 80 MW. The investment committed to this project was not available, and the commercial operation commenced in October 2014. Also in October 2014, the private sponsor was granted the authorization to operate another power plant named UTE Tropical Bioenergia II (32 MW in capacity). This unit commenced operations in November 2014.