Engie exits 857-MW coal-fired plant in Brazil

Transmission lines. Author: Nayu Kim. License: Creative Commons, Attribution 2.0 Generic.

September 1 (Renewables Now) - Brazilian power utility Engie Brasil Energia SA (BVMF:EGIE3) and its subsidiary Engie Brasil Energia Comercializadora Ltda have signed a sales contract regarding their entire stake in the 857-MW Jorge Lacerda coal-fired thermal power plant in Santa Catarina state.

This move is part of Engie’s divestment plan as it looks to accelerate its transition to a carbon-neutral world, focusing its activities on renewable energy generation, infrastructure and natural gas, the company said on Monday.

Diamante Holding Participacoes Ltda, a unit of Fram Capital Energy II Fundo de Investimento em Participacoes Multiestrategia (FRAM), is the buyer.

Engie and EBC’s entire equity stake in Diamante Geracao de Energia Ltda, the entity that holds Jorge Lacerda, is valued at up to BRL 325 million (USD 62.6m/EUR 52.9m). From this amount, BRL 210 million will be paid at the closing of the transaction and the rest is subject to restatement with certain conditions established in the agreement.

(BRL 1.0 = USD 0.193/EUR 0.163)

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Lucas is based in Brazil. He joined Renewables Now to expand coverage of the Ibero-American market, a highly attractive destination for green energy investment.

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