French sugar company Tereos seeks to expand power business in Brazil
Samuel Custodio, head of power commercialisation for Tereos in Brazil, said the growth will be driven by cross-selling to the company's existing sugar and ethanol clients as well as potentially to their suppliers and partners and through acquisitions.
Tereos, the second-biggest sugar producer in Brazil, produces power from sugarcane biomass in some of its Brazilian plants.
The power business provides Tereos with a predictable revenue stream even though it represents a small portion of the company's total revenue in Brazil, Custodio said in an interview on Wednesday.
The group used to sell the power mostly through the Brazilian regulated power system, which is basically run by concessions.
But as these contracts expired, the company has shifted its focus to the non-regulated power market, where corporate clients can choose their energy suppliers directly.
Tereos generates approximately 1,500 gigawatt-hours of electricity annually at six plants in Brazil's Sao Paulo state. This output covers its own operational needs, allowing the company to sell the surplus.
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