EDP has reached an agreement with "a group of Brazilian investors coordinated by Mercurio Asset for the sale of an 80% stake in Pecém Geração de Energia S.A.", the electricity company said on Wednesday in a statement to the CMVM.
The agreement, signed by EDP Brasil - now wholly owned by EDP - reflects an enterprise value of 1.9 billion reais (around 366 million euros at the current exchange rate) for 100% of the coal-fired power plant.
The agreement includes the sale of an 80% stake and an option to sell the remaining 20% until the end of the power purchase agreement (PPA).
"The Pecém coal-fired power plant, located in the port of Pecém in the state of Ceará in Brazil, has a capacity of 720 MW and plays an important role in supporting the security of the electricity supply to the Northeast region of Brazil, where electricity consumption and the capacity for
production capacity have been growing steadily. The plant has a regulated capacity PPA that runs until July 2027," said the company led by Miguel Stilwell.
EDP will retain 100% of the management of the 1.25 MW renewable hydrogen project that began operations in December 2022 at the Pecém complex, the electricity company points out.
"This transaction is an important milestone in achieving EDP's strategic goal of being coal free by the end of 2025. Regarding the last three coal-fired power plants still in its portfolio, located in Spain, EDP continues to actively develop decommissioning plans
of the Soto and Los Barrios plants, which require authorizations from the respective electricity system operator, as well as a plan to convert the Aboño plant from coal to gas. At the same time, EDP is developing just transition projects at these sites, namely renewable hydrogen projects," the statement concludes.