Feb 20, 2015

JMalucelli Energy: Generation, Transmission and Sale of Energy

Admin
5 min
This company profile originally appeared in the

This company profile originally appeared in the February 2015 issue of Energy Digital.

Operating for over 13 years within the national territory, JMalucelli Energy (JME) has a portfolio of 1133 megawatts in operating assets and power generation projects, 1100 km of transmission lines, and many substations. The holding company is one of the largest business groups in the state of Paraná and has more than 70 companies operating in various sectors of the Brazilian economy, including construction, sales and rental of heavy equipment, finance, communications, and others. JME operates in the generation, transmission, and sale of energy, from the identification of potential developments in inventory to the deployment and commercial operation of the project.

The company focuses its investments on power generation projects from renewable sources in wind, hydroelectric, and solar parks. JME seeks to develop, implement, and operate its assets in clusters that allow for cost optimization in all stages of operations. JME’s assets and hydroelectric generation projects are concentrated in Goias, Mato Grosso, and Paraná, while its wind projects are distributed in two regions of Rio Grande do Norte. Currently, JME participates in 187 MW in wind farms and 62 MW in hydroelectric generation. It also has four transmission lines in operation, in addition to approximately 500 MW in wind, hydro, and photovoltaic park projects.

THE ENERGY INDUSTRY

Because it is a private and independent renewable energy company--it has no ties to major distributors--JME enjoys benefits. “Our competitive advantage lies in the development of core competencies of JMalucelli Group--heavy construction and financial structuring--combined with a very lean structure in the holding company,” explains the JME CEO João Marcos Prosdócimo Moro.

The company consists of 14 professionals with extensive experience in development and the implementation of projects of renewable energy generation. All JME operation is outsourced. “But we plan to have our own team so we get a number of projects that justify this initiative,” says the CEO.

An industry trend that can bring more business to the company is the generation of solar energy. According to the CEO, as new generation sources are located in the North and Northeast, the transmission infrastructure investments to exploit this type of energy will continue to be prioritized. “Considering this trend, JMalucelli Energy should continue investing in the best projects of its portfolio in order to maximize the return for its shareholders and ensure a low-risk cash flow and business sustainability in the long term,” he adds.

PROJECTS AND EXPANSION

Reinforcing its commitment to the use of renewable energy, among dozens of projects spread across ten Brazilian states, JME is installing a solar photovoltaic power generation system at the Federal University of Goiás (UFG). The unit is scheduled to come on stream in April 2015. The project, which aims to promote research in the field of photovoltaic generation, is forecast to 17 kilowatts-peak of installed capacity and will supply a third of the (energy) load of the UFG School of Engineering.

In the last three years, JME has invested more than R$ 1 billion and implemented nine projects that pertain to the generation and transmission of energy. Among them, there are three wind parks, one small hydroelectric plant (SHP), four transmission lines, and one hydropower plant. With the exception of the Belo Monte Hydroelectric Power Plant, all other projects are already in commercial operation.

JME has a solid portfolio of projects. Among them, the Queixada SHP, in Goiás, deserves to be highlighted. The plant was constructed by JMalucelli Construction Works and the whole process of development and implementation was managed by the company’s technical team. The CEO is adamant when he says that “Queixada Small Hydroelectric Plant--an SHP of 30 MW and capacity factor of 0.73--is our main asset and, in it, we have 100% participation.” Further, he explains, “The energy supply contracting is also a success, with 80% of generated energy contracted through the 30 year Multi-Annual Plans (MAPs) indexed to the inflation in the regulated market--large distributors.”

JME’s smooth-sailing success does not stop there. During the next five years, JME will continue to increase its portfolio of assets of renewable energy generation through the implementation of development projects. Prosdócimo details the positive forecasts of the company’s growth. “We have eight very promising wind farms, with 200 MW of total installed capacity, which make us ready to participate in future energy auctions in 2015. These energy parks, when contracted, will take between 3 and 5 years to begin to operate. Among our SHP projects, we have three main projects in development that could add another 120 MW within the next five years,” he concludes.

QUALITY AND SAFETY

A good example of the company’s care for the environment is the three wind farms (RDV 1, RDV 3 and MIA 3) that are operating in Rio Grande do Norte. All of them are already installed. Currently, the company monitors the operation and maintenance of three desalination plants in the city of Galinhos, which includes a biweekly analysis of water quality. “In addition, a project has been developed and agreements have been signed with the Galinhos city government for the construction, operation, and maintenance of landfill, sanitation, and water supply facilities in the city,” says Prosdócimo.

Above all, JME, together with the other companies within the group, is currently going through a process of structuring its quality, safety, environment, and occupational health practices. These practices follow important guidelines, such as the integration of safety and occupational health, environmental integration of quality practices, the creation of an annual schedule of processes monitoring visits (to be performed by internal auditors from specific departments), the monitoring of all of the company’s business units,  and an ongoing review of existent policies, creation new ones when necessary.

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Jun 25, 2021

UK must stop blundering into high carbon choices warns CCC

climatechange
Energy
Netzero
UK
Dominic Ellis
5 min
The UK must put an end to a year of climate contradictions and stop blundering on high carbon choices warns the Climate Change Committee

The UK Government must end a year of climate contradictions and stop blundering on high carbon choices, according to the Climate Change Committee as it released 200 policy recommendations in a progress to Parliament update.

While the rigour of the Climate Change Act helped bring COP26 to the UK, it is not enough for Ministers to point to the Glasgow summit and hope that this will carry the day with the public, the Committee warns. Leadership is required, detail on the steps the UK will take in the coming years, clarity on tax changes and public spending commitments, as well as active engagement with people and businesses across the country.

"It it is hard to discern any comprehensive strategy in the climate plans we have seen in the last 12 months. There are gaps and ambiguities. Climate resilience remains a second-order issue, if it is considered at all. We continue to blunder into high-carbon choices. Our Planning system and other fundamental structures have not been recast to meet our legal and international climate commitments," the update states. "Our message to Government is simple: act quickly – be bold and decisive."

The UK’s record to date is strong in parts, but it has fallen behind on adapting to the changing climate and not yet provided a coherent plan to reduce emissions in the critical decade ahead, according to the Committee.

  • Statutory framework for climate The UK has a strong climate framework under the Climate Change Act (2008), with legally-binding emissions targets, a process to integrate climate risks into policy, and a central role for independent evidence-based advice and monitoring. This model has inspired similarclimate legislation across the world.
     
  • Emissions targets The UK has adopted ambitious territorial emissions targets aligned to the Paris Agreement: the Sixth Carbon Budget requires an emissions reduction of 63% from 2019 to 2035, on the way to Net Zero by 2050. These are comprehensive targets covering all greenhouse gases and all sectors, including international aviation and shipping.
     
  • Emissions reduction The UK has a leading record in reducing its own emissions: down by 40% from 1990 to 2019, the largest reduction in the G20, while growing the economy (GDP increased by 78% from 1990 to 2019). The rate of reductions since 2012 (of around 20 MtCO2e annually) is comparable to that needed in the future.
     
  • Climate Risk and Adaptation The UK has undertaken three comprehensive assessments of the climate risks it faces, and the Government has published plans for adapting to those risks. There have been some actions in response, notably in tackling flooding and water scarcity, but overall progress in planning and delivering adaptation is not keeping up with increasing risk. The UK is less prepared for the changing climate now than it was when the previous risk assessment was published five years ago.
     
  • Climate finance The UK has been a strong contributor to international climate finance, having recently doubled its commitment to £11.6 billion in aggregate over 2021/22 to 2025/26. This spend is split between support for cutting emissions and support for adaptation, which is important given significant underfunding of adaptation globally. However, recent cuts to the UK’s overseas aid are undermining these commitments.

In a separate comment, it said the Prime Minister’s Ten-Point Plan was an important statement of ambition, but it has yet to be backed with firm policies. 

Baroness Brown, Chair of the Adaptation Committee said: “The UK is leading in diagnosis but lagging in policy and action. This cannot be put off further. We cannot deliver Net Zero without serious action on adaptation. We need action now, followed by a National Adaptation Programme that must be more ambitious; more comprehensive; and better focussed on implementation than its predecessors, to improve national resilience to climate change.”

Priority recommendations for 2021 include setting out capacity and usage requirements for Energy from Waste consistent with plans to improve recycling and waste prevention, and issue guidance to align local authority waste contracts and planning policy to these targets; develop (with DIT) the option of applying either border carbon tariffs or minimum standards to imports of selected embedded-emission-intense industrial and agricultural products and fuels; and implement a public engagement programme about national adaptation objectives, acceptable levels of risk, desired resilience standards, how to address inequalities, and responsibilities across society. 

Drax Group CEO Will Gardiner said the report is another reminder that if the UK is to meet its ambitious climate targets there is an urgent need to scale up bioenergy with carbon capture and storage (BECCS).

"As the world’s leading generator and supplier of sustainable bioenergy there is no better place to deliver BECCS at scale than at Drax in the UK. We are ready to invest in and deliver this world-leading green technology, which would support clean growth in the north of England, create tens of thousands of jobs and put the UK at the forefront of combatting climate change."

Drax Group is kickstarting the planning process to build a new underground pumped hydro storage power station – more than doubling the electricity generating capacity at its iconic Cruachan facility in Scotland. The 600MW power station will be located inside Ben Cruachan – Argyll’s highest mountain – and increase the site’s total capacity to 1.04GW (click here).

Lockdown measures led to a record decrease in UK emissions in 2020 of 13% from the previous year. The largest falls were in aviation (-60%), shipping (-24%) and surface transport (-18%). While some of this change could persist (e.g. business travellers accounted for 15-25% of UK air passengers before the pandemic), much is already rebounding with HGV and van travel back to pre-pandemic levels, while car use, which at one point was down by two-thirds, only 20% below pre-pandemic levels.

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