ENGIE will focus its business in Brazil on renewable energy generation

*Engie Brasil.

*Company offers coal-fired thermal power plants for sale in the southern region of the country, totaling 1.2 GW of capacity

10 April 2017, Sweetcrude, Lagos —
Aligned with the group’s global strategy, ENGIE Brasil will focus its business and new investments on renewable energy sources such as wind, solar, hydro and biomass plants, according to Maurício Bähr, CEO of the company.

In the scope of one of the company’s strategic pillars in the world, decarbonization, ENGIE decided to sell its two coal-fired assets in Brazil, a process started in February of this year.

The company has hired the bank Morgan Stanley to advise on the market survey for the sale of the Jorge Lacerda thermoelectric complex, which is already in operation, and of the Pampa Sul thermoelectric plant, which is expected to be completed by the end of 2018.

Together, the projects sum an amount of about 1.2 GW of installed capacity – out of a total of more than 10 GW that ENGIE Brazil, the largest private generator in the country, has in plants in operation and under construction.

Bähr says that the company already has more than a dozen demonstrations of companies interested in the evaluation of the two coal-fired thermoelectric plants.

“We are receiving intent letters from more than 10 companies. We believe that in a few more months we may receive non-binding proposals”, said the CEO.

The first intention of ENGIE is to sell the plants together, since Jorge Lacerda generates revenue, while Pampa Sul is still in the investment phase. “It’s a very interesting mix for the investor, but we still consider negotiating the plants separately”, stated Bähr.

In addition to renewable energy investments, ENGIE also seeks asset opportunities in the gas transport, flow, and distribution chain. Gas is the best fuel to be used in the so-called energy transition, as it is much less polluting than coal.

The gas will also have a large supply in Brazil along with the pre-salt development, which makes this segment more attractive.

In Brazil, ENGIE will not operate in the Oil and Gas Exploration and Production area.

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