Chinese state-owned enterprises SEPCO Electric Power Construction Corporation and Hebi Guochang Energy Development Co plan to build a coal-fired power plant in Brazil, in the state of Rio Grande do Sul, on the border with Uruguay, Brazilian newspaper Estado de São Paulo reported.
The power plant, called Ouro Negro (Black Gold), will have an installed capacity of 600 megawatts, becoming the second largest coal-fired plant in Brazil, after the Pecém plant, with 720 megawatts in operation in the state of Ceará.
The newspaper wrote that on the Brazilian side is entrepreneur Sílvio Marques Dias Neto, who has chaired state power company CEEE of Rio Grande do Sul and was mayor of Pedras Altas for two terms, from 2001 to 2008.
The Chinese will control the operation, with two thirds of the share capital and 80 percent of the cost of construction of the plant is guaranteed by the China Development Bank.
The Estado de São Paulo newspaper said that if the money comes from China, so will “every screw required to build the power station”, whose architectural design and engineering was carried out by China’s Northwest Electric Power Design Institute.
The project has already been approved by the Brazilian National Electric Energy Agency (Aneel), but has yet to get environmental approval, without which it cannot compete for tenders launched by the government to hire construction of new plants.
Brazil currently has 13 coal-fired power plants in operation, totalling 3389 megawatts of power, equivalent to 2.4 percent of all electricity available in the country. (macauhub/BR/CN)