Umoe Paranapanema Cogeneration Plant

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In June 2011,Umoe Bioenergy S.A. was granted an authorization to build and operate a 60-MW thermal power plant (cogeneration) located in the state of Sao Paulo. The power plant was set to run using sugar cane residues as fuel. The company requested the authorization to establish itself as an independent power producer in 2009, which would allow the trade of electricity on both the regulated and unregulated markets. Yet, the 35-year contract was only signed in June 2011. The sponsor committed to invest US$ 62.8 million (BRL 103.7 million) in the power plant. Financial closure was achieved in March 2011, when the sponsor was granted a US$ 59 million (BRL 96.4 million) loan from BNDES. The remaining cost was set to be financed with the sponsors’ internal resources. Construction works commenced in early 2011 and operations were expected to begin by 2012. Umoe Bioenergy S.A. has signed power purchase agreements to sell all of its output to the regulated market. Operations commenced in June 2012.