Neoenergia signs wind PPA with Brazilian co Ambar

Brazilian energy firm Neoenergia SA (BVMF:NEOE3) has signed a 10-year energy trading contract with local company Ambar Energia for wind power from two parks under construction.

Under the terms of the power purchase agreement (PPA), Ambar will start receiving the electricity in 2023, the Brazilian company announced on Tuesday. It said the deal is expanding its customer portfolio in the Free Contracting Environment (FtA).

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Ambar Energia is part of J&F Investimentos SA, a domestic private investment holding company, including businesses like Banco Original, Flora and JBS.

"Access to clean energy sources is strategic for the J&F group, with its companies moving faster and faster to reduce greenhouse gas emissions in production chains," commented Ambar President Marcelo Zanatta.

The Brazilian arm of Spanish power giant Iberdrola SA (BME:IBE) will source the electricity for Ambar from two wind complexes currently under construction in the Northeast region of the country. Part of the 471.2-MW Chafariz wind project, the two wind farms are expected to start operating this year.

Neoenergia is building 27 wind parks in the Northeastern states of Paraiba, Bahia and Piau to reach 1.5 GW of installed wind capacity.