Power utility Engie Brasil Energia SA has reached a deal to offload its last coal-fired plant in Brazil as it looks to achieve a 100% renewable portfolio in the country.

Engie Brasil announced that it agreed to sell the 345-MW Pampa Sul thermal power plant to investment funds Grafito and Perfin Space X, which are controlled by Starboard and Perfin, respectively.

The transaction is valued at around BRL 2.2 billion (USD 424m/EUR 424.4m), including BRL 1.8 billion of debt assumed by the buyers.

CEO Eduardo Sattamini, said: 

"Engie Brasil Energia is on a trajectory to become 100% renewable, an objective it has been pursuing for at least six years when we decided to accelerate our exit from coal-fired operations in line with the ENGIE Group’s global guideline to focus its efforts and investments on solar and wind generation projects in addition to transmission infrastructure."

Perfin's CIO, Ralph Rosenberg, said: 

"For their part, the buyers are committed to a long-term ESG strategy for the coal plant. Approximately BRL 150 million will be invested in Pampa Sul to reduce carbon emissions by up to 5%."

Source: Renewables Now

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