French power producer Albioma has purchased 65% stake in the 48MW Codora Energia's bagasse-fuelled cogeneration facility located in Brazil's Goias state.
The remaining 35% in Codora Energia is be retained by organic sugar producer Jalles Machado.
Commissioned in 2011, the plant is located within a Jalles Machado-owned distillery that processes 1.6 million tons of sugarcane annually.
Capable of generating 98GWh of electricity, the cogeneration facility has power purchase agreement in place for 87GWh/year, until 2026.
Albioma chairman and managing director Jacques Pétry said: "Together, Albioma and Jalles Machado will form a strong, well-balanced partnership, combining the Jalles Machado group’s strong position as a leader in the Brazilian sugar and ethanol industry with Albioma’s expertise in high-efficiency recovery of bagasse, a key biomass resource in Brazil.
"We are more than happy for our Brazilian partner to retain a 35% stake in Codora Energia, which ensures that the long-term interests of the two parties are aligned.
"The Codora project is also expected to make a positive contribution to Group performance from its first year of operation by Albioma."
Albioma plans to finance the acquisition with a mix of local debt and equity. The transaction is scheduled to be completed in the second half.