September 16 (Renewables Now) - Power utility Engie Brasil Energia SA (BVMF:EGIE3) has reached a deal to offload its last coal-fired plant in Brazil as it looks to achieve a 100% renewables portfolio in the country.
Engie Brasil announced on Thursday it has agreed to sell the 345-MW Pampa Sul thermal power plant to investment funds Grafito and Perfin Space X, which are controlled by Starboard and Perfin, respectively.
The transaction is valued at around BRL 2.2 billion (USD 424m/EUR 424.4m), including BRL 1.8 billion of debt assumed by the buyers.
“Engie Brasil Energia is on a trajectory to become 100% renewable, an objective it has been pursuing for at least six years, when we decided to accelerate our exit from coal-fired operations in line with the ENGIE Group’s global guideline to focus its efforts and investments on solar and wind generation projects in addition to transmission infrastructure," stated CEO Eduardo Sattamini.
For their part, the buyers are committed to a long-term ESG strategy for the coal plant. "Approximately BRL 150 million will be invested in Pampa Sul with the goal of reducing carbon emissions by up to 5%,” said Perfin's CIO, Ralph Rosenberg.
Completion of this transaction is pending the fulfilment of certain conditions.
(BRL 1.0 = USD 0.193/EUR 0.193)