Company announced joint venture with Qatar’s Nebras Power to invest in two projects in Santa Catarina
09/09/2022
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Pedro Litsek — Foto: Divulgação
Diamante Geração de Energia unveiled a joint venture with Nebras Power, an international energy investment company and a subsidiary of Qatar Electricity & Water Company (QWEC), to invest R$5 billion in two natural gas thermoelectric projects in Santa Catarina. Last year, the company had already acquired the 857 MW complex Jorge Lacerda, in Santa Catarina, from Engie Brasil Energia for R$325 million.
The first project foresees the construction of the Norte Catarinense thermoelectric plant, a 600 MW project bought from Engie, with investments of up to R$3 billion. It is expected to be located in Garuva. The second is a 440 MW generation unit, which will be set up inside the Jorge Lacerda thermoelectric plant, with an investment of up to R$2 billion.
Engie CEO Pedro Litsek said that in the joint venture, each party owns 50% of the projects and will jointly explore investments in the gas thermoelectric plants. According to him, the equity in these projects will be divided equally between the companies, with 30% of the total investment being made with their own capital.
“The first [project] is more prepared to participate in auctions, which is the Norte Catarinense thermoelectric. We already have the permit, land, and everything that is needed. The second project is in the final stages of the environmental permit within the Jorge Lacerda complex, and we hope to have this permit by the end of the year,” Mr. Litsek said.
The investment is conditioned on a guarantee of new revenues, should the company win the capacity auctions scheduled for 2023. The construction of the thermoelectric plants is expected to start the following year, and the projects should start operating in 2028.
The second venture, within the Jorge Lacerda complex, which has seven coal-fired generating units, plans to take advantage of the land and infrastructure already installed on the site to install a gas turbine. As an example, Mr. Litsek highlights the transmission and water lines already available.
The executive considers that the project has an important social side. Bill 712/19, which extended for 15 years, starting in 2025, the contracting of coal-fired thermoelectric plants, benefited the Jorge Lacerda thermoelectric complex, by means of an energy contract.
The former owner, Engie Brasil Energia, was considering shutting down the complex if it did not find a buyer, but the coal industry found a way out to make operations viable. The law also provided for the reallocation of the labor force of about 20,000 workers involved in the coal chain to other activities.
“The two projects will allow us to mobilize the manpower we already have to be used in these new ventures,” Mr. Litsek said.
The challenge for Diamante to be competitive in the auction and, in the future, in maintaining the thermal plants, are the gas supply guarantees. The Garuva project is more strategic and can even initiate the operation of the LNG (liquefied natural gas) terminal that is being built in the Port of São Francisco do Sul.
“We are close to the connection point of the New Fortress Energy terminal on the Bolivia-Brazil pipeline, and we see the gas for the Norte Catarinense Thermoelectric coming from this terminal,” Mr. Litsek said.
*By Robson Rodrigues — São Paulo
Source: Valor International