ENGIE concludes the disposal of the Pampa Sul Thermoelectric Plant to Starboard and Perfin
ENGIE Brasil Energia (EGIE3) has concluded the sale of the Pampa Sul Thermoelectric Plant, situated in the municipality of Candiota (RS) to the participation investment funds Grafito and Perfin Space X, managed by the Starboard and Perfin companies, respectively. The closing of the transaction took place on Wednesday, May 31 following a little more than eight months from the date of the signature of the share purchase agreement on September 15, 2022. The asset has an installed capacity of 345 MW.
The acquisition price is R$ 450 million, subject to the fulfillment of certain conditions set forth in the Share Purchase Agreement executed between the parties. The transaction also encompasses the replacement of the corporate guarantee covering Pampa Sul’s financing, now the responsibility of the acquirers and worth R$ 1.6 billion.
“The conclusion of the disposal of the Pampa Sul Thermoelectric Plant consolidates an important strategy on the part of ENGIE Brasil Energia of exiting coal-fired operations and becoming a 100% renewable energy generator, directing its efforts towards investments in the expansion of installed clean energy capacity in the domestic electric energy matrix. Since 2016, more than R$ 20 billion have been invested in wind and solar energy, as well as transmission, and we shall continue to pursue this virtuous growth plan both for businesses and for the country”, remarks Eduardo Sattamini, Chief Executive and Investor Relations Officer at ENGIE Brasil Energia.
About the Pampa Sul Thermoelectric Plant
The Pampa Sul Thermoelectric Plant was made viable as a result of the A-5 auction held in November 2014, when ENGIE – then known as Tractebel – sold 294.5 average megawatts of the energy output from the future thermoelectric power plant in Candiota, state of Rio Grande do Sul, through a power purchasing agreement with a duration of 25 years.
Since the beginning of commercial operations in June 2019, Pampa Sul TPP has been reporting improved efficiency and uptime parameters thanks to the advanced electro-mechanical technology employed.
Subsequent to the operational consolidation of the asset, in 2021, ENGIE decided to resume negotiations involving the plant’s disposal. In total, 113 direct employees work at the site together with a further 500 of outsourced personnel, most of them drawn from municipalities in the region, this headcount now to be integrated into the operational structure of the acquirers of the asset.
Pampa Sul TPP
Location: Candiota (RS)
Total installed capacity: 345 MW
– Guaranteed energy: 294,5 MW, generating sufficient energy to meet the needs of a population of about 1.3 million.
– Transmission line: 20.4 km, 525 kV, 60 Hz
– COD: June 28, 2019
– PPA: 294.5 MW contracted at the A-5 Auction held on November 28, 2014 (regulatory market environment), for 25 years as from June 2019.
ABOUT ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose (“raison d’être”), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. Turnover in 2022: 82.6 billion Euros.
In Brazil, ENGIE, leader in 100% renewable power generation in the country, operates in generation, commercialization and transmission of electric power, gas transport and energy solutions. The Company
has in the country an installed capacity of 12,5 GW, originated from renewable sources and with low GHG emissions, such as hydro, solar and biomass power plants, and windfarms.
With the acquisition of Transportadora Associada de Gás – TAG, ENGIE now also owns the largest natural gas transportation network in the country, at 4,500 km and transecting 10 states and 191 cities.
The Group has a complete portfolio of integrated solutions focused on reducing costs and improving the infrastructure for companies and cities, such as energy efficiency, public lighting, energy monitoring and management.
With 2,800 employees, ENGIE’s turnover in Brazil in 2023 was of R$ 11.7 billion. ENGIE trades on the B3 through its energy generation and trading company, ENGIE Brasil Energia, under the ticker EGIE3. In addition to being a B3 Novo Mercado component, the Company is one of the very few companies that have been listed in the Business Sustainability Index since its creation in 2005. In 2021, ENGIE Brasil Energia was included in the Carbon-Efficient Index (ICO2), made up of IBrX 100 companies that are most transparent in terms of GHG emissions reporting and how they are preparing for a low-carbon economy.
The company also received in May 2024 the certification Great Place to Work, a recognition which validates the continuous commitment of the company to create a positive and inclusive work environment for all.
The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris – Europe 120/France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).