Voltalia signs first corporate long-term power sale contract with leading Brazilian food company BRF

Voltalia signed a corporate power sales agreement with BRF, one of the world’s largest agribusiness companies with 100,000 employees in 140 countries. The new contract will increase the size of Voltalia’s VSM 2 wind farm project from
64 MW to 128 MW. Voltalia’s total cumulated future revenues under secured long-term sales contracts now
exceeds €4 billion. The new contract increases to 1,040 MW Voltalia’s expected capacity in operation for the end of 2020.

With a strategic focus on non-subisidized markets, Voltalia had signed since 2014 numerous short- and medium-term power sales contracts in the free market, in order to sell at a high price the electricity produced between the accelerated commissioning and the beginning of the long-term power sales contract. Those private contracts captured the value created by Voltalia’s technical ability to accelerate construction of power plants.

Based on that successful free market track record, Voltalia announces that it has signed with its new client BRF its first long-term corporate power sales contract, running for 10 years from January 2021. Once the contract ends, Voltalia will sell the production through new short- or long-term private power sales contracts.

As for most Voltalia projects in Brazil, construction of the extra 64 MW will be accelerated. Turbines are scheduled to be progressively commissioned in the course of 2020, therefore producing electricity which will be sold on the free market until the beginning of the BRF contract in January 2021.

The VSM 2 project is part of the Serra Branca cluster. With a potential of nearly 2 GW, it is one of the largest renewable energy sites in the world. The cluster’s potential will continue to be developed by Voltalia with the possibility for each new project to be either owned by Voltalia or sold to third-party investors.