Ometto negotiates to buy an Abengoa bioethanol plant in Brazil

Abengoa is moving towards the resolution of the bankruptcy proceedings (judicial recovery, in accordance with Brazilian law) in which most of its subsidiaries in Brazil incurred. After overcoming at the end of 2019 the bankruptcy of its businesses related to the construction and operation of infrastructure (power lines, mainly), the next step concerns bioenergy. In this process, Mario Dedini Ometto and Adriano Gianetti Dedini Ometto are negotiating the purchase of the Sao Luiz plant in Pirassununga, in the State of Sao Paulo. Brazilian businessmen seek to incorporate a partner to present an offer, according to the Brazilian press.

Abengoa Bioenergía has two electric cogeneration plants in Brazil, Sao Luiz and Sao Joao, in Boa Vista, also in the State of Sao Paulo, which use sugarcane bagasse, the raw material used in its own plants for the manufacture of sugar and ethanol. The investment in these projects, which have an installed capacity of 140 megawatts (MW), amounted to 300 million euros.

Abengoa entered the bioethanol business in Brazil in 2007. It was precisely through the purchase for an amount of 216 million euros of 100% of the Brazilian Adriano Ometto Participaçoes (Dedini Agro Group). It is precisely the businessmen whom the company then acquired who now want to buy back the facilities of Sao Luiz.

That operation generated a confrontation between the Ometto and Abengoa that reached the US and Brazilian courts. The conflict has already been resolved.

Abengoa Bioethanol Brazil entered into competition in 2017. Months later it reached an agreement with the US multinational Cargill to sell two of the three bioethanol plants it has in the State of Sao Paulo. The operation was estimated at about 70 million, but it did not bear fruit. Disputes with some creditors, such as China Construction Bank (CCB), have hindered the resolution of the bankruptcy process, whose plan was approved in mid-2019.

No impact for Abengoa

The eventual sale will be made through a judicial auction. The amount of the operation will be used to pay the creditors and no income is expected for Abengoa.

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