Brazil Potash signs 28-year power deal for Autazes potash project

Brazil Potash has signed a non-binding memorandum of understanding with Gera Center for a 28-year Build, Own, Operate and Transfer (BOOT) contract to power its Autazes Potassium Project in Amazonas, shifting about $33M in upfront energy investment off the project’s construction budget.

Under the agreement, Gera Center will supply, install, operate and maintain 63 modular, containerized diesel generator sets with a maximum capacity of 20 MW. The plant will start at 10 MW and scale to 20 MW within the first year, with first power possible within 120 days of a definitive contract being signed. Because no grid power is available on site during construction, the system will fully supply civil works and shaft excavation.

The BOOT structure transfers roughly $33M in initial generation investment from capital expenditure to operating costs spread across the contract term, and is expected to deliver net savings of about $10M over its life versus the project’s Preliminary Feasibility Study estimate. After construction, the system will serve as emergency backup for 23 years, guaranteeing continuity if the planned 500 kV transmission line to Brazil’s national grid is interrupted, with a minimum 98% availability requirement.

“This BOOT agreement with Gera Center provides reliable power for construction in a location where the electrical grid is not yet available, while also reducing the initial project deployment costs,” said Matt Simpson, CEO of Brazil Potash. He said Gera Center was selected through a competitive process from 12 invited companies and represents one of up to five BOOT contracts the company is structuring as part of its construction financing strategy.

The company cautioned that the MoU is non-binding and that definitive contracts are not guaranteed. The Autazes project is central to Brazil’s effort to reduce its near-total dependence on imported potash.

Source: World Fertilizer