Porto do Pecém power station

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[português][español]

Porto do Pecém is a 1,085-megawatt (MW) coal-fired power station in São Gonçalo do Amarante, in the northeastern Brazilian state of Ceará.

Location

The undated satellite photo below shows the plant, which is near São Gonçalo do Amarante, Ceará, Brazil.

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Background

Pecém I

Brazilian energy company Eneva (formerly MPX Energia SA) and power holding company EDP Energias no Brasil each held a 50 per cent stake in the 720 MW Pecém I station at the time of its original licensing in 2006. Pecém I won a contract in Brazil's October 2007 A-5 energy auction to produce an annual average of 615MW of power over a 15-year period, and in January 2012 received permission from the Brazilian authorities to begin testing the first coal unit.[1] In December 2012, Brazil's energy regulator ANEEL authorized Pecém I's first unit to begin commercial operations[2], and in May 2013, Pecém I's second unit also received the green light from ANEEL to start operating commercially.[3] In 2015, Eneva sold its stake in the project to EDP Brasil, which assumed 100% ownership of Units 1 and 2.[4]

Pecém II

A newer addition, the 365 MW Pecém II plant, owned 50% by Eneva and 50% by E.ON, completed its testing phase in June 2013 and received ANEEL's authorization to begin commercial operations in October 2013.[5] Eneva's current electricity generation concession for the Porto do Pecém plant expires in December 2027.[6]

The power station receives coal from the Port of Pecém.

In an October 2020 interview with Capital Reset, Eneva CEO Pedro Zinner reiterated the company's commitment to phasing out new investment in coal-fired power plants, but left open the possibility of continuing to operate the Pecém plant beyond 2027 if Brazilian demand for electricity exceeds supply from other sources.[7]

Corporate reports issued by Eneva in early 2022 reconfirmed the company's commitment to phase out all coal assets by 2040[8][9], and to limit new coal investment to the currently operating Itaqui and Porto do Pecém power stations.[9][10]

Financing for Pecém I

In February 2008, a financing agreement for Pecém I was closed. US$279.38 million in loans were provided by ING Group, Citigroup, Millennium BCP, WestLB, Banco do Brasil, and Haitong Bank. US$365.68 million in equity was provided by EDP Group and ENEVA. Citigroup acted as financial advisor to the sponsor for the deal.[11] In July 2009, a second financing agreement for Pecém I was closed. US$1,039.19 million in loans were provided by the Inter-American Development Bank, BNDES, Credit Agricole Group, Millennium BCP, and Caixa Geral de Depósitos. US$544 in equity was provided by EDP Group and ENEVA. Citigroup aagin acted as financial advisor to the sponsor for the deal.[12] Finally, in 2016, EDP Group announced that it refinanced part of the Pecém I loans by contracting two new loans in the total amount of R$ 480 million and the capital injection by EDP in Pecém in the amount of R$ 500 million.[13]

Proposed Expansion Projects

EDP Brasil

In October 2017, EDP Vice President Luiz Otavio announced that his company was considering development of a new R$1.5-billion unit to be fueled with Colombian coal, either at the existing Porto do Pecém location or at a separate location in one of two competing (but unnamed) Brazilian states.[14]

In late 2022, EDP announced that it would begin developing a pilot green hydrogen plant within the Porto do Pecém power complex in 2023.[15][16]

Eneva

Eneva CEO Pedro Zinner, in a May 2019 interview with Brazil Journal, said that Eneva had no further plans to invest in coal and that he expected coal to play a diminishing role in the company's footprint over time, despite the fact that Eneva's coal-fired power plants, including Porto do Pecém and the MPX Itaqui power project, had generated a profit for the first time in 2018.[17]

Financing for Pecém II

In January 2009, a financing agreement for Pecém II was closed. US$131.88 million in loans was provided by Bradesco, Citigroup, Santander, Itau-Unibanco, and Banco Votorantim. Citigroup acted as financial advisor for the sponsor.[18]

Environmental impact

In May 2019 it was announced that 43 families living near the Pecém port and industrial complex would receive compensation for their exposure to coal dust from the plant. The impact on these families was not addressed by the plant's original Environmental Impact Assessment (EIA).[19]

Project Details

  • Sponsor:
    • Plant I Unit 1: EDP Energias do Brasil[2][4]
    • Plant I Unit 2: EDP Energias do Brasil[2][4]
    • Plant II Unit 1: Eneva[20]
  • Parent company: EDP - Energias de Portugal, Eneva
  • Location: São Gonçalo do Amarante, Ceará, Brazil
  • Coordinates: -3.5827, -38.875 (exact)
  • Status:
    • Plant I Unit 1: Operating (2012)[2]
    • Plant I Unit 2: Operating (2013)[2]
    • Plant II Unit 1: Operating (2013)[21]
  • Gross Capacity:
    • Plant I Unit 1: 360MW[22]
    • Plant I Unit 2: 360MW[22]
    • Plant II Unit 1: 365MW[5]
  • Type: Subcritical
  • Coal Type:
  • Coal Source: Colombia[2]
  • Source of financing:
    • Pecém I: US$1405 million in debt from ING Group, Citigroup, Millennium BCP, WestLB, Banco do Brasil, Haitong Bank, Inter-American Development Bank BNDES, Credit Agricole Group, and Caixa Geral de Depósitos; US$1000.35 million in equity from EDP Group and ENEVA[11][12][13]
    • Pecém II: US$131.88 million in debt from Bradesco, Citigroup, Santander, Itau-Unibanco, and Banco Votorantim.[18]

Articles and resources

References

  1. "Brazil to begin testing of new 360 MW coal fired unit". Power Engineering International. 2012-02-01.
  2. 2.0 2.1 2.2 2.3 2.4 2.5 "The Power Plant | EDP Pecém". EDP Brasil. Retrieved 2021-01-15.
  3. "UTE Pecém II já opera comercialmente,", Diario do Nordeste, May 11, 2013.
  4. 4.0 4.1 4.2 "EDP concluí compra da UTE Pecém I". CanalEnergia. May 15, 2015.
  5. 5.0 5.1 "Pecém II". Eneva website. Retrieved 2023-01-04.
  6. "2019 Sustainability Report". Eneva. Retrieved 2020-12-28.
  7. "Eneva descarta novos investimentos em carvão, mas pode dar sobrevida a usinas existentes, diz CEO". Capital Reset. October 30, 2020.
  8. "Apresentação Corporativa (pp 3, 32)". Eneva. October 2022.
  9. 9.0 9.1 "Relatório de Sustentabilidade 2021 (pp 3, 8, 22, 26, 32, 91)" (PDF). Eneva. June 2022.
  10. "Eneva promete sair de carvão até 2040 e investir em captura de CO2 e hidrogênio". Capital Reset. February 8, 2022.
  11. 11.0 11.1 "Preview of MPX Pecem I Coal-Fired Power Plant Bridge Loan (720MW) | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-10-06.
  12. 12.0 12.1 "Preview of Porto do Pecem I TPP Long-Term Financing | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-10-06.
  13. 13.0 13.1 MarketScreener. "EDP Energias do Brasil : Prepayment Porto do Pecém Geração de Energia S.A. Financing | MarketScreener". www.marketscreener.com. Retrieved 2020-10-06.
  14. "CE concorre a usina de R$ 1,5 bilhão,", O Povo, October 6, 2017.
  15. "EDP operará em dezembro 1ª usina de Hidrogênio do Pecém". Diário do Nordeste. November 24, 2022.
  16. "Historic Moment: EDP Produces The First Green Hydrogen Molecule in Ceará". Hydrogen Central. December 17, 2022.
  17. Viri, Natalia (May 20, 2019). "Cheia de gás, Eneva ganha respeito no mercado". Brazil Journal.
  18. 18.0 18.1 "Preview of Pecem II 360MW Expansion Bridge Loan | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-10-06.
  19. Familias afetadas durante cinco anos por fuligem de carvão mineral serão indenizadas no Ceará, globo.com, May 16, 2019
  20. "Pecém II: Eneva compra 100% das ações da Uniper - Negócios - Diário do Nordeste". Diario do Nordeste. March 13, 2018.
  21. "UTE Pecém II está ligada ao sistema - Negócios - Diário do Nordeste". Diario do Nordeste. June 4, 2013.
  22. 22.0 22.1 "EDP Brasil completed the acquisition of Eneva's stake in Pec... | Energy Finance & Investment". IPP Journal. May 22, 2015.

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