Ferrari Termoeletrica is the owner of the Central Geradora Termeletrica UTE Ferrari (Ferrari), a sugar-cane biomass co-generation plant.

The deal, which is subject to certain conditions set forth on the stock purchase agreement for the operation are met, will also see Tractebel assuming BRL48m (€15m) of Ferrari’s net debts.

The sugarcane bagasse-fueled plant, which has been in operations since June 2009, has a commercial capacity of 23.2MW average, of which 18MW average has been contracted in electricity auctions intended for the regulated contracts environment.

Once the transaction is closed, Tractebel and Ferrari Agroindustria will form a consortium to develop a project comprised of electricity and steam generation from the plant, integrated with the Ferrari Agro sugar and ethanol plant.

In addition, the company is likely to invest around BRL85m (€26.6m) to increase the plant’s installed capacity to 80.5MW that will increase its commercial capacity to 35.6MW average.