ENGIE will resume the selling process for the Pampa Sul Thermal Power Plant, located in the Municipality of Candiota, state of Rio Grande do Sul. Since the commercial operation startup, in June 2019, best practices have been implemented to reach the best operational and maintenance parameters of the Plant’s various systems and equipment.

“Pampa Sul is a consolidated asset featuring late-generation technology and contracted capacity over another 23 years. Given its operational maturity, we decided to resume the selling process in line with the Group’s global decarbonization strategy. The Company is focused on its purpose to accelerate the transition to a carbon-neutral economy, directing its efforts to renewable energy generation, natural gas, and infrastructure,” said Eduardo Sattamini, CEO of ENGIE Brasil Energia (EGIE3).

A bank is already under retainer to proceed with the sale, which the Company expects to complete this year. In recent years, a few corporate groups have already shown interest in purchasing the asset.

About Pampa Sul

The Pampa Sul Thermal Power Plant has received more than R$ 2 billion in investments and may be regarded as the largest project implemented in the South region of Brazil in recent years. It has 345 MW in installed capacity and is 100% contracted in the Regulated Contracting Environment (ACR – “Ambiente de Contratação Regulada”) until December 31, 2043, providing security to the national electric energy system and generating enough power to serve approximately 1.3 million people, reinforcing electric energy production in the state of Rio Grande do Sul.

The technology suite in place at Pampa Sul, from the fluidized bed boiler, which is described as a clean coal combustion technology, to atmospheric emissions abatement systems, make sure that the Plant’s emissions will not exceed strict limits set by the environmental authorities.

Global decarbonization strategy

In 2015, the ENGIE Group announced its global intent to lead the energy transition, responding to the worldwide movement for a low-carbon economy. In line with this strategic directive, the Company launched a process of selling its coal-burning assets, taking into account not only commercial conditions, but environmental and social issues in particular.

At present, more than 90% of ENGIE’s installed capacity in Brazil comes from renewable sources such as hydroelectric, thermal and biomass plants, and windfarms. The company is committed to maintain its emission reduction efforts and to helping Brazil in its pursuit of sustainable development and facing climate change.

Exclusive agreement on the sale of the Jorge Lacerda Thermal Power Complex

In addition to resuming the Pampa Sul selling process, ENGIE has also moved ahead with the selling process of the Jorge Lacerda Thermal Power Complex, in Capivari de Baixo, southern Santa Catarina. On February 25, 2021, it executed an exclusive agreement with FRAM Capital for a period of 120 days in connection with sale of the Complex.