The Court of Auditors of the Union has renewed the concession for the Vitória-Minas Railroad. With this, Vale began on the so-called Ferrovia de Integração do Centro-Oeste (Fico). In addition to the implementation of Fico, Mato Grosso is waiting for another decision by TCU, which will deal with Ferrogrão, with 933 kilometres of extension, investments of R$ 8.4 billion ($1.6 bn) are expected in the concession project.
The growing interest of companies in supplying their operations with clean energy should be the main factor guiding investments in generation in Brazil in the coming years, with the reduction of construction costs of wind and solar plants making these businesses viable even with the coronavirus pandemic. The “green energy contracts” market in Latin America’s largest country has attracted giants in the global electricity industry, such as France’s Engie and the U.S.’s AES.
The ANEEL closed July with 119.9 MW released for commercial operation – 84% in wind farms, which reached a total of 3,123.38 MW approved this year in 12 states across the country. The survey also points out that 52 wind power plants are operating under a test regime and that wind projects correspond to 36.9% of the assets under construction in the electrical sector and 29% among the constructions not yet started.
Azul concluded the second quarter with a liquidity position of R$ 2.3 billion ($460 mm), considering cash and equivalents, short-term investments and receivables, up from R$ 2.2 billion ($440 mm) in the quarter ended in March and above the R$ 2 billion ($400 mm) projection for the period.
Fintech Culttivo, which offers access to credit for coffee producers, has partnered with fund manager Augme Capital to make up to R$ 50 million ($10 mm) available to the platform’s clients. The startup of the financial sector has been operating for two months and has lent R$ 5 million ($1 mm) to coffee growers in southern Minas Gerais, Cerrado Mineiro and São Paulo State.
The Itaipu hydroelectric dam will increase energy production starting Monday to help the Paraguayan soybean crop flow by water, the plant said. According to a statement from Itaipu, the measure, which will allow the export of 100,000 tons of Paraguayan grain, will remain in effect until Aug. 16.
Eletrobras, a state-owned company, plans to invest R$ 6 billion ($1.2 bn) per year until 2035 in the expansion of its power generation and transmission park, according to a strategic plan announced to the market. But the amount could more than double, to R$12.6 billion ($2.5 bn) per year, if the government’s plans to capitalize and privatize the company are successful.
In a move similar to what happened in the 1990s and 2000s involving hydroelectric plants, large energy consumers are investing in wind and solar complexes to become self-producers. The sustainable appeal of energy sources each day becomes more relevant in the companies’ strategy of being “greener”. The goal is to have their own plants to supply their demand.
The National Electrical Energy Agency (Aneel) granted Rio Alto Energia a 35-year concession for the implementation and operation of five photovoltaic plants under the regime of independent production of electricity, totalling 135 MW of installed capacity in the municipality of Coremas, in the countryside of Paraiba.
Petrobras announced a reduction in its quarterly losses in the second quarter and pointed to “signs of recovery” from the global economic crisis caused by the coronavirus pandemic. The company based in Rio de Janeiro registered a net loss of R$ 2.7 billion ($540 mm) in the April-June period, lower than the R$ 48.5 billion ($9.6bn) of the first quarter of 2020.