Thermal Power Plant in the Amazon Basin Will Require Billion-Dollar Investments

Eneva Was One of the Winners of the Auction for Supply to Boa Vista and Connected Locations, Held This Friday, 31/05, by the Electric Energy Trading Chamber (CCEE).

A federal government auction to enable energy supply solutions to Roraima concluded this Friday with the contracting of a nominal capacity of 293.8 megawatts (MW), from nine projects that will require billion-dollar investments. The company will develop the natural gas-fired Jaguatirica II thermoelectric project in Roraima, with 132.3 MW, supplied with gas produced by Eneva in the Azulão field, in Amazonas.

Eneva, whose shares surged more than 6 percent after the auction, sold in the bidding the future production of the Jaguatirica II thermoelectric plant, while Oliveira Energia secured the Monte Cristo project, which runs on diesel, with a capacity of 42 MW.

BBF marketed the production of projects that combine biofuels with biomass and solar radiation, with 17.6 MW and 56 MW, respectively. Uniagro will implement four biomass projects using wood chips, each with 10 MW, while Enerplan will also build a biofuel and solar energy plant, with 11.5 MW.

The auction takes place at a time when the Northern region of the state has not been receiving energy imports from Venezuela, relying on diesel thermal plants.

Eneva stated that its project, with the highest capacity and investment planned among the winners, will require a total of 1.8 billion reais, with 40% in foreign currency. It sold energy at a reference price of 798.17 reais per megawatt-hour, with fixed revenue of 429.3 million per year.

The Azulão field marks the expansion of Eneva’s exploration and production activities beyond the Parnaíba Basin, reinforcing the company’s expertise in operating assets on land and in regions in the North and Northeast of the country.

“After a year of intense work, we managed to develop this highly complex project, which is so important for Amazonas, Roraima, and the country”, said Eneva’s CEO, Pedro Zinner.

According to him, the importance of the project for Amazonas is to enable the production of Azulão, declared commercial in 2004, inaugurating the producing phase of the Amazonas Basin.

Eneva also stated that it closed a contract with Techint for the construction of the plant, while critical equipment for the project’s power island will be supplied by Siemens.

The company also contracted equipment from Galileo Technologias for the implementation of a Liquefied Natural Gas (LNG) plant that will receive LNG shipments sent from the Azulão field to supply the plant.

The auction winners, who are set to begin supply on June 28, 2021, are the electric companies Eneva and Oliveira Energia, in addition to BBF, Enerplan, and Uniagro, according to the Electric Energy Trading Chamber (CCEE), responsible for conducting the bidding.

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