UK company seeks power deals in Brazil after leaving talks with Engie of France

• 6 years ago (2018-04-10)
• David Flin

Coal 296 Latin America 80

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ContourGlobal, a London-based power generation company, is still seeking acquisitions in Brazil after abandoning talks to buy two coal-fired power plants from Engie of France. Alessandra Marinheiro, CEO for Latin America for ContourGlobal said that the company is looking closely at wind assets that Eletrobras is trying to sell, and it will consider both renewable and traditional energy sources.

ContourGlobal is seeking to expand its portfolio after raising over £470 million in an initial public offering in London in November. Latin America is an important part of its strategy, and the company said that it is also pursuing opportunities in Colombia, Mexico, and Peru. The company’s focus in Brazil is on projects that have long-term power purchase agreements and a predictable revenue flow.

Marinheiro declined to say why ContourGlobal decided not to pursue the deal with Engie, and in a statement, Engie said that it wasn’t aware of ContourGlobal’s decision. Engie is making a strategic shift to increase investment into renewables and natural gas networks, and away from coal. It is planning to close its coal plants in Chile, and the two facilities in Brazil are its last coal assets in that country.