U.S. clean energy and carbon credit developer Econergy International has agreed with HydroPartners LLC to invest US$16.8 million for ownership stakes in two small hydro projects being built in Brazil’s Minas Gerais State.
Econergy and its affiliates are to own at least 85 percent of the 19.8-MW Areia Branca project and 45 percent of the 20-MW Pipoca project. (HNN 3/6/06)
Econergy Chief Executive Officer Tom Stoner said the projects are the first of many third-party-developed projects the company is pursuing. Stoner said some outstanding conditions remain prior to closing of the deal. He said the projects should be on line in early 2008.
Areia Branca has an agreement to sell power for 20 years to Brazilian national utility Centrais Eletricas Brasileiras S/A (Eletrobras). Pipoca is negotiating a power sales agreement with Minas Gerais utility Companhia Energetica de Minas Gerais (Cemig).
Econergy has 40 clean energy projects under development throughout Latin America that might sell carbon credits under the United Nations-authorized Clean Development Mechanism (CDM) program. CDM is intended to reduce emissions of greenhouse gases thought to contribute to global warming.