Brenco Contracts BRL2bn in Generation

Brenco, the Brazilian bioenergy developer headed by former Petrobras chief Henri Philippe Reichstul, has sold 13.4m megawatt-hours of reserve energy at a government auction, resulting in revenues of BRL2bn from 2010 to 2024. The energy will be generated from bagasse remaining from the crushing of sugarcane at its mills. Last week Brenco obtained BRL1.2bn in loans from development bank BNDES to fund part of the construction of the Alto Taquari-Mineiros facility, among the first of its mills, which will produce 220MW of electricity and 370m gallons of ethanol per year. Brenco’s initial investment plan calls for spending BRL5.5bn to develop 8 mills. To compliment its debt fundraising, it is aiming for an eventual $300m-$400m IPO.