Tractebel Buys Brazil Sugar-Cane Power Plant for $74 Million

Dec. 17 (Bloomberg) -- Tractebel Energia SA, Brazil’s biggest utility by market value, plans to buy a power plant that runs on sugar-cane waste in the southeastern city of Pirassununga for as much as 172 million reais ($74 million).

The 65.5-megawatt project began operations in 2009 and is owned by Ferrari Agroindustria SA, Florianopolis, Brazil-based Tractebel said yesterday in a statement. Tractebel may invest 85 million reais to expand the facility to 80.5 megawatts.

Tractebel will assume about 48 million reais of debt as part of the deal, according to the statement.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net