Brazilian asset management fund Atico, German energy company Steag to invest 750M reais in 150-MW woodchip-fueled biomass thermoelectric power plant in Sao Desiderio, Brazil

November 18, 2013 () – Brazilian asset management fund Atico in a partnership with German energy company Steag will invest BRL 750 million (USD 324.1m/EUR 239.9m) in the construction of a 150-MW biomass thermoelectric power plant (TPP) in Sao Desiderio, northeastern Bahia state.

According to a report of local business daily Valor from today, the plant, to be Atico's first renewable energy sector project, will use as fuel eucalyptus wood chips. The raw material for the plant will come from an eucalyptus plantation of Remasa, in which Atico has acquired a 50% minus one share, via its Tree Florestal fund. Remasa has eucalyptus plantations covering area of 17,300 ha (42,750 acres).

The thermal project called Campo Grande Bioeletricidade has managed to contract its future output at the government's A-5 energy auction in August for BRL 136.7 per MWh. It will be developed by Diferencial Energia, 75%-owned by local Bolt Energias, and 25%-controlled by Steag. On the other hand, Bolt Energias is a power generator and trader founded in 2010, which is 100%-controlled by Atico's fund FIP Atico Geracao de Energia.

The plant will supply its output to the country's interconnected electricity system SIN via a 70-km (43 miles) transmission line, to require BRL 40 million investment.

(BRL 1.0 = USD 0.432/EUR 0.320)

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