ENGIE Signs Exclusivity Agreement For Sale Of Jorge Lacerda Thermoelectric Complex
On February 25, ENGIE Brasil Energia (EGIE3) signed an exclusivity agreement for a period of 120 days with FRAM Capital for the sale of the Jorge Lacerda Thermoelectric Complex with an annual installed capacity of 857 MW located in Capivari de Baixo in the south of the state of Santa Catarina.
Since 2017, the Company has been examining alternatives for its coal generation assets in Brazil. During this period, proposals were analyzed but none of the ensuing negotiations were successful in reaching the point of equilibrium between risks and selling conditions. Consequently, the company decided to intensify its discussions with respect to the Complex in conjunction with multi-sectoral task forces and the participation of different spheres of government, class associations and representatives of civil society. Currently, the details of the alternatives of sale versus a phased decommissioning of the asset are being considered.
“The eventual sale of the Jorge Lacerda Thermoelectric Complex is in line with ENGIE’s decarbonization strategy throughout the world. The Company is intent on its proposal to accelerate the transition to a carbon neutral economy with its activities orientated towards renewable energy generation, natural gas, and infrastructure”, declared Eduardo Sattamini, the Company’s Chief Executive Officer.
“This is a lucrative operation with ample conditions for the potential acquiror to continue plant activities as long as risk allocations are correctly balanced” Sattamini explained. A conclusion to the negotiations currently underway are expected before the end of the first half of this year.
“We believe that the sale will give the coal chain sufficient time to transform, mitigating the impact on the economy in the south of the state with the end of operations in 2025”, he explained. Should a deal for selling the Complex not occur in the next few months, the phased decommissioning of the asset – planning for which is continuing – will be implemented.
In the event that negotiations are successful, the terms and conditions of the transaction will still be subject to the approval of the management and shareholders of ENGIE Brasil Energia as well as the appropriate government authorities.
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).