Albioma continues to expand in Brazil
Albioma has signed final documentation relating to the acquisition of a 65% equity interest in Codora Energia, which owns a 48MW bagasse-fired cogeneration plant in the Brazilian state of Goiás.
The plant, commissioned in 2011, backs onto a distillery that currently processes 1.6 million tonnes of sugarcane annually. The distillery is owned by Jalles Machado, the world's second-largest organic sugar producer (which processed 4.3 million tonnes of sugarcane during the most recent harvest).
The plant, which currently injects 98GWh of electricity to the power grid, benefits from a long-term power purchase agreement (guaranteed until 2026) covering the injection of 87GWh/year.
Albioma's says it aims to gradually increase the volume of sugarcane processed by the distillery to 2.1 million tonnes per year and, in the medium-term, plans to add a third 20MW combustion turbine and burning sugarcane chaff. This would enable electricity exports to be increased from their current level to more than 170GWh.
Albioma will own a 65% equity interest in Codora Energia; the Jalles Machado group will retain the remaining 35%. The acquisition will be financed by a combination of local debt (50%) and shareholders' equity (50%). Finalisation of the agreement is subject to conditions precedent, which are expected to be resolved during the second half of 2015.
Jacques Pétry, chairman and MD, says: 'Together, Albioma and Jalles Machado will form a strong, well-balanced partnership, combining the Jalles Machado group's strong position as a leader in the Brazilian sugar and ethanol industry with Albioma's expertise in high-efficiency recovery of bagasse, a key biomass resource in Brazil.'