Cosan Group, one of the leading producers in the sugar and energy sector worldwide, had the Barra Bioenergy Thermoelectric Power Plant inaugurated by the Brazilian President, Luiz Inácio Lula da Silva. The plant has the capacity to satisfy the needs of 1.2 million householders.
As part of the company’s mission to provide cleaner and renewable energy, the biomass thermoelectric plant, located in Barra Bonita ( São Paulo State ) generates electrical energy from sugarcane bagasse produce at the Barra Bonita unit. This unit is the largest crushing unit of the Cosan Group.
Cosan Group had received authorization to begin the commercial operations at the plant in July, 2010 from the National Electrical Energy Agency (Aneel).
The plant will have total installed capacity of producing 136 megawatts (MW) of energy with two 33 MW turbo generators installed in the first phase and two more 35 MW turbo generators yet to be installed in the second phase.
With the growing importance of renewable sources of energy, we believe the future prospects of Cosan Limited (CZZ) are very bright. Bioenergy is one of the popular renewable energy sources that include wind, solar, wave and hydro-power. Biomass is the largest renewable energy sources and can provide thermal, electrical, and mechanical energy services.
Cosan leads in producing electrical energy from sugarcane bagasse and straw worldwide and owns over 23 production units. Among these, 21 are in the State of São Paulo, one in the city of Jataí and another in the city of Caarapó. All units are self-sufficient in energy, while 12 have a long-term energy supply contract. Cosan’s potential installed capacity is approximately 1,200 MW.
We currently maintain our Neutral recommendation on Cosan, supported by Zacks #3 (Hold) Rank.
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