Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

Coomex, Brazil's biggest electricity trader details its future investments and developments

 

 

Coomex, Brazil’s biggest electricity trader intends to develop a 90MW biomass-burning power plant estimated at US$185 million in Bahia. The project will encompass forest and elephant grass plantations estimated to cost $34.7 million and three 30MW generator turbines that sum to US$150 million. The company’s president announced that it had already gotten about 20,000 hectares land environmental permits all over the country, most of which will be degraded pastures.

 

The land will be used to grow 50% eucalyptus, elephant grass and other tree species exclusive to that specific area’s ecosystem.  During the production process, the elephant grass, churned into small bits will be put into the boiler whereas the timber logs will go whole to save on energy. Other residues from the forests like twigs and branches will be cut into small pieces before burning.

 

Coomex plans to go into 60MW of installed capacity in a government planned tender for capacity that is expected in five years time. This investment therefore, will give the company enough time to renew its forests and make the first cut, expected to take place after four years while the elephant grass will be harvested after six months. Large industrial consumers will benefit from the remaining 30% that will be sold on the free market.  

 

As a result of its approach to the investment, the company could decide to cut down on the amount of trees it turns to wood chips and instead sell it to paper and the wood industry.  Similar Biomass investments in Brazil have always burned sugar cane residues bought under half the price compared to wood chips at US$13.4 per tone. The merit is, wood powered plants run all year round as opposed to the sugar cane based ones that are only operational in the harvest season.

 

According to the company, the Bahia biomas investment is one in many that will be rolled out in the future. Company President announced plans to launch other plants in Bahia, Tocantins and Minas Gerais to increase the overall output to 450-500MW. It is developing 10 other small hydro plants totaling 11MW in combined capacity in Sao Paulo, Parana, Rio de Janeiro and Minas Gerais. 

 

Coomex acquired 12% stake in the 30MW Barra dos Coqueiros wind project that sold electricity during last December’s government organized tender for power contracts and has another 17% stake in another similar company that will take part in a similar government organized tendering for renewable energy in August.

 

May 27, 2010.