EDB and MPX Form Partnership to Develop Two Coal-Fired Plants in Northern Brazil

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Researched by Industrial Info Resources (Sugar Land, Texas)--EDB (Energias do Brasil S.A.), a holding company that integrates EDP Energias de Portugal's assets in Brazil, and mining company MPX Mineracao e Energia, recently announced the signing of an agreement to jointly develop two thermal power plants in the north of Brazil.

With a total power output of 350 MW, the Maranhao thermo plant will be built in the city of Sao Luiz, state of Maranhao. The 700 MW Pecem plant will be built in the city of Sao Goncalo do Amarante, Ceara State.

Both plants will use imported coal as the primary fuel, and are registered to participate in the government power auction scheduled for delivery in 2012. According to Antonio Jose Sellare, EDB Chief Financial Officer, the project will be viable if power prices for delivery in 2012 are the same as prices for delivery in 2010.

Sellare also stated that for the Maranhao plant, MPX will invest $1.3 million to EDB and an additional $3.9 million on the sale of the energy. EDB will pay MPX $2.6 million and an additional $7.8 million on the sale of power for Pecem.

With the partnership final closing, each group will have a 50% stake in each project. EDB said that they are currently developing a number of feasibility studies to assess the implementation of medium and small-scale hydro plants, while at the same time studying the conditions to purchase the equipment to build both thermo plants.

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