Engie completes sale of Thermoelectric Jorge Lacerda

The Company’s Board of Directors signed on Monday the sale contract for FRAM Capital of the Jorge Lacerda Thermoelectric Complex, located in Capivari de Baixo

The management of ENGIE Brasil Energia, after approval by the Company’s Board of Directors, signed on Monday the sale contract for FRAM Capital of the Jorge Lacerda Thermoelectric Complex, located in Capivari de Baixo, in the south of Santa Catarina, whose annual capacity installed is 857 MW.

Jorge Lacerda Thermoelectric Power Plant is located in Capivari de Baixo –  Photo: file/NDJorge Lacerda Thermoelectric Power Plant is located in Capivari de Baixo – Photo: file/ND

The transaction takes place six months after the beginning of the exclusivity period granted to FRAM Capital for the asset’s due diligence process.

The purchase price of 100% of the equity interest of the subsidiary Diamante Geração de Energia, holder of the CTJL, will be up to R$ 325 million, of which R$ 210 million will be paid at the closing of the transaction and R$ 115 million are subject to compliance certain conditions set forth in the Quota Purchase and Sale Agreement (QPA).

“The sale of the Jorge Lacerda Thermoelectric Complex will enable a gradual transition to the economy of the southern region of Santa Catarina, reducing potential local socioeconomic impacts when compared to a process of discontinuation of operations,” said Eduardo Sattamini, CEO and Investor Relations Officer at ENGIE Brasil Energia. The transaction still requires approximately 60 days to complete.

Currently, approximately 90% of ENGIE’s matrix in Brazil is renewable, coming from hydroelectric, wind, solar and biomass generation sources. “The gradual decarbonization process of ENGIE’s portfolio in Brazil is in line with the global strategy of accelerating the transition to a carbon neutral economy, directing investments towards renewable generation and infrastructure”, stated the Chairman of the Company’s Board and CEO of ENGIE in Brazil, Mauritius Bahr.

In addition to signing the contract for the sale of the Jorge Lacerda Thermoelectric Complex, the Company is also receiving proposals for the sale of the Pampa Sul Thermoelectric Power Plant, a coal-fired thermal plant located in Rio Grande do Sul.