EDP Bioeléctrica and Grupo Altri's Celulose do Caima plan to invest €200 million in building 7 biomass power plants, which together will generate 120 MW of grid-connected electricity.

 

The plants will use biomass derived from forestry operations.

 

In 2005 EDP sold 50% of their shares Celulose Do Caima, the forestry products group, from whom the feedstock for the new plants will be sourced.

 

The value of the transaction for the sale of the 50% stake in EDP Bioeléctrica amounted to €7.5 million and included shares, shareholder loans and supplementary capital contributions, booked at EDP Group’s financial statements for the total amountof €14.4 million.

 

EDP Bioeléctrica already operates a 9MW forestry residues biomass power plant in Mortágua, Portugal.

 

In 2005, energy output of the Mortágua plant totalled 49 GWh.

 

Celulose do Caima centres its activity in the following areas:

• forestry management and production
• paper pulp production and supply
• operation of a 7 MW biomass power plant in Constância

The share transaction was the first step in the creation of a partnership between EDP and Celulose do Caima to integrate their power generation and forestry businesses.

 

This companies claim the integration of their operations will have the additional benefit of addressing a major concern in Portugal – forest fires – by allowing better management of the country’s woodland.

 

David Smith, Singapore