U.S.-based aluminum producer Novelis Inc. announced the sale of the proposed 155-MW Cacu-Barra dos Coqueiros hydroelectric complex in Brazil to steel producer Gerdau Acos Longos S.A.
Novelis said November 7 it received approval from Brazilian regulator Agencia Nacional de Energia Eletrica (ANEEL) to transfer its rights to Gerdau to develop and operate the complex.
Although it did not break out the cost of the hydro projects, Novelis said it received a total of US$35 million from sale of the projects and the sale of its 25 percent stake in a Brazilian calcined coke facility to its partners in that business.
The divestments were part of a previously announced plan to deal with Novelis’ non-core upstream operations in Brazil.
The hydro complex consists of the 65-MW Cacu and 90-MW Barra dos Coqueiros hydro projects on the Claro River in Goais State. Last year, Novelis’ Brazilian unit, Novelis do Brasil Ltda., qualified the projects to sell power in Brazil’s capacity auction for new and proposed projects.