Colombian oil producer Ecopetrol SA (NYSE:EC) will be the sole off-taker of electricity generated by a planned 25-MW net biomass-fired power plant in Colombia's department of Casanares, the company said on Monday.
The project will be realised by electricity sector player EDF Colombia and forestry company Refocosta, which formed an alliance to promote biomass-based power development in the country.
Thanks to the off-take agreement with Ecopetrol, EDF Colombia and Refocosta were able to take the financial decision to build their first biomass energy project as partners, according to the press release.
The power plant will be located in the municipality of Villanueva. It is expected to generate over 200 GWh of electricity per year using eucalyptus as feedstock.
Construction is scheduled to start in the first quarter of 2023, with operations planned for early 2025.
EDF Colombia is part of French utility group EDF SA (EPA:EDF) and Villanueva is its first project in the country, Jean-François Lebrun, chief executive of the Colombian unit, said in the press release.
EDF Colombia and Refocosta plan to develop up to 200 MW worth of biomass-based energy projects.