Aug 24, 2020

EDF sells 50% stake in Brazil wind farms to Omega Geração

Omega Geração
EDF
wind farms
Energy
Jonathan Campion
2 min
The Brazilian renewable energy company Omega Geração has agreed to acquire a 50% stake in EDF Renewables’ wind farms in the state of Bahia
The Brazilian renewable energy company Omega Geração has agreed to acquire a 50% stake in EDF Renewables’ wind farms in the state of Bahia...

Omega Geração, a São Paulo-based renewable energy company that invests exclusively in the wind, hydro and solar sectors, announced on Sunday 23 August that it had entered into an agreement with the EDF Renewables. The deal relates to the French company’s assets in the Ventos da Bahia 1 and 2 complexes, which have a capacity of 182.6 megawatts. 

Omega Geração announced in a statement that the purchase was worth $118mn, of which 55% ($65mn) would be paid in cash. The remaining $53mn would be paid through the transfer of long-term debt.

As part of the deal, Omega Geração has the option to buy additional wind farms from EDF with a further 265MW of capacity. It has until December to make an offer. In this regard, the company commented through its partner Omega Desenvolvimento that it is “in advanced negotiations that could lead to the implementation of wind projects of approximately 200MW of capacity.”

Omega is actively building its portfolio of wind projects in Brazil. In July the company announced that it had acquired plants in the state of Rio Grande do Sul with 582.2MW of capacity from Electrobras. That deal was worth $267mn.

The Omega Geração wind, hydroelectric and solar portfolio currently stands at 1.19 gigawatts. When the share of the new EDF Renewables wind farms are added, the company’s generation capacity will be almost 1.8 gigawatts.

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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

Drax
Biomass
Sustainability
BECCS
Dominic Ellis
2 min
Drax is advancing biomass following Pinnacle acquisition it reported in a trading update

Drax' recently completed acquisition of Pinnacle more than doubles its sustainable biomass production capacity and significantly reduces its cost of production, it reported in a trading update.

The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.

The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).

Drax CEO Will Gardiner said its Q1 performance had been "robust", supported by the sale of Drax Generation Enterprise, which holds four CCGT power stations, to VPI Generation.

This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.

In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.

The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.

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