Veolia kicks-off construction of biomass-fired steam plant in Brazil

French water, waste and energy management group Veolia (EPA:VIE) has commenced construction works on a biomass-fired plant that will supply steam to Brazilian thermoplastic resin producer Braskem SA (BVMF:BRKM5).

The project at the Marechal Deodoro industrial hub in Alagoas state requires an estimated investment of BRL 400 million (USD 76.9m/EUR 73.4m).

The plant will be comprised of four industrial boilers operating 24 hours a day, seven days a week, to ensure an uninterrupted supply of steam for Braskem's PVC factory, the off-taker said.

Under the agreement, Veolia will supply the steam from the biomass-based plant for a 20-year period. The facility is scheduled to commence operations between the end of 2023 and the beginning of 2024.

In addition to the construction of the plant, Veolia is also in charge of its operation and maintenance (O&M). The company will use biomass from eucalyptus and other types such as industrial waste, bamboo, among others.

Braskem estimates that the steam supply will allow it to reduce its greenhouse gas emissions by around 150,000 tonnes annually, equivalent to 30% of its emissions in Alagoas, the company noted.

(BRL 1.0 = USD 0.192/EUR 0.183)

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