Porto do Pecém power station

From Global Energy Monitor

[português]

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

Brazilian energy company Eneva (formerly MPX Energia SA) and power holding company EDP Energias no Brasil each hold a 50 per cent stake in the 720 MW Pecém I station, which was originally licensed 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] 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.[4] Eneva's current electricity generation concession for the Porto do Pecém plant expires in December 2027.[5]

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.[6]

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.[7] 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 and BNDES. US$544 in equity was provided by EDP Group and ENEVA. Citigroup aagin acted as financial advisor to the sponsor for the deal.[8] Finally, in 2016, EDP Group announced that it refinanced part of the Pecém I loans by contracting two new loans in the total amount of R$ 480 million and the capital injection by EDP in Pecém in the amount of R$ 500 million.[9]

Proposed Expansion

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.[10]

However, 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.[11]

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.[12]

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).[13]

Project Details

  • Sponsor:
    • Unit 1: EDP Energias do Brasil[2]
    • Unit 2: EDP Energias do Brasil[2]
    • Unit 3: Eneva[14]
  • Parent company: EDP - Energias de Portugal, Eneva
  • Location: São Gonçalo do Amarante, Ceará, Brazil
  • Coordinates: -3.5827, -38.875 (exact)
  • Status:
    • Unit 1: Operating (2012)[2]
    • Unit 2: Operating (2013)[2]
    • Unit 3: Operating (2013)[15]
  • Gross Capacity:
  • 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, and two unnamed sources; US$1000.35 million in equity from EDP Group and ENEVA[7][8][9]
    • Pecém II: US$131.88 million in debt from Bradesco, Citigroup, Santander, Itau-Unibanco, and Banco Votorantim.[12]

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 "Pecém II". Eneva website. Retrieved 2021-01-20.
  5. "2019 Sustainability Report". Eneva. Retrieved 2020-12-28.
  6. "Eneva descarta novos investimentos em carvão, mas pode dar sobrevida a usinas existentes, diz CEO". Capital Reset. October 30, 2020.
  7. 7.0 7.1 "Preview of MPX Pecem I Coal-Fired Power Plant Bridge Loan (720MW) | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-10-06.
  8. 8.0 8.1 "Preview of Porto do Pecem I TPP Long-Term Financing | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-10-06.
  9. 9.0 9.1 MarketScreener. "EDP Energias do Brasil : Prepayment Porto do Pecém Geração de Energia S.A. Financing | MarketScreener". www.marketscreener.com. Retrieved 2020-10-06.
  10. "CE concorre a usina de R$ 1,5 bilhão,", O Povo, October 6, 2017.
  11. Viri, Natalia (May 20, 2019). "Cheia de gás, Eneva ganha respeito no mercado". Brazil Journal.
  12. 12.0 12.1 "Preview of Pecem II 360MW Expansion Bridge Loan | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-10-06.
  13. Familias afetadas durante cinco anos por fuligem de carvão mineral serão indenizadas no Ceará, globo.com, May 16, 2019
  14. "Pecém II: Eneva compra 100% das ações da Uniper - Negócios - Diário do Nordeste". Diario do Nordeste. March 13, 2018.
  15. "UTE Pecém II está ligada ao sistema - Negócios - Diário do Nordeste". Diario do Nordeste. June 4, 2013.
  16. 16.0 16.1 "EDP Brasil completed the acquisition of Eneva's stake in Pec... | Energy Finance & Investment". IPP Journal. May 22, 2015.

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