en.Wedoany.com Reported - Brazilian biofuel company Brasil Bio Fuels (BBF) is planning to sell stakes in six thermal power plants as part of its judicial reorganization process. The transaction involves thermal power plants owned by the Consórcio Geração Amazonas (CGA), with BBF intending to sign an agreement with generator rental energy company Aggreko for the acquisition of the related assets.

The agreement involves Aggreko Energia Locação de Geradores acquiring 100% of the shares or capital stock of one or more Special Purpose Entities (SPEs) to be established by Brasil Bio Fuels and Amazonbio Indústria e Comércio de Biodiesel da Amazônia. The transaction was approved on Wednesday (June 3) by the Administrative Council for Economic Defense (Cade), but its completion remains subject to a series of regulatory, contractual, and judicial approvals, consents, and authorizations.

These authorizations include approval from the National Electric Energy Agency (Aneel), permission from the federal government through the Solimões Border Command/8th Jungle Infantry Battalion, consent from the Feijoal and Belém do Solimões indigenous communities, and licenses from the National Indian Foundation (Funai), the Brazilian Institute of Environment and Renewable Natural Resources (Ibama), and Amazonas Energia. The transaction also requires judicial authorization within the framework of BBF's judicial reorganization, as well as other conditions necessary for the transfer, compliance, possession, ownership, use, and management of the assets and SPEs. Under the approved reorganization plan (pursuant to Law No. 11.101/2005), BBF and other companies within the same economic group may sell assets and stakes through Independent Production Units (UPIs). The transaction is structured through the establishment of UPIs and SPEs, allowing the transfer of assets to the buyer without the buyer assuming the seller's debts, subject to compliance with applicable legal, regulatory, and judicial requirements.

The six thermal power plants involved in the transaction are Belém dos Solimões (0.89 MW), Envira (4.1 MW), Estirão do Equador (0.63 MW), Feijoal (1.18 MW), Ipixuna (4.09 MW), and Palmeiras do Javarí (0.63 MW). All plants are located in the state of Amazonas and operate using diesel and/or biodiesel. These assets belong to the Consórcio Geração Amazonas (CGA), which was the winner of Aneel Auction No. 02/2016, responsible for generating and supplying electricity in isolated systems within batches A/II and A/III, with supply regulated under the Electricity Commercialization Contracts for Isolated Systems (CCESIs), covering 32 thermal power plants (UTEs) at different locations in inland Amazonas.

Currently, Aggreko holds a 99% stake in CGA and operates 26 plants. Brasil Bio Fuels and Amazonbio jointly hold the remaining 1% stake in the consortium and operate the six thermal power plants involved in this transaction. In a statement submitted to Cade, the companies indicated that the transaction is economically, regulatory, and operationally justified, aiming to protect the continuity of key assets related to electricity supply in Amazonas's isolated systems, mitigate risks arising from the financial situation of BBF companies, and consolidate assets already belonging to the same consortium and under the same regulatory contracts under CGA's primary operator. The companies stated that the transaction's importance at the industry level was confirmed in the minutes of the 290th meeting of the Electric Sector Monitoring Committee (CMSE) in April 2024, which noted that BBF's financial condition was a concern for isolated system supply, and that the transaction helps maintain the safety and stability of electricity supply in remote areas without causing significant competitive changes. The agreement may also bring operational efficiencies, as Aggreko is already CGA's main consortium member, holding a 99% stake and operating 26 of the 32 thermal power plants covered by the CCESI contracts. Therefore, Aggreko's acquisition of these assets can centralize the management of the six thermal power plants involved in the transaction under "an agent with existing operational experience, logistics scale, and knowledge of the regulatory arrangements applicable to the isolated systems served by CGA."

In April of this year, Brasil Biofuels Acre submitted an application to Cade for the sale of its power generation assets in the state of Acre to Japaratinga Participações, controlled by Geribá Investimentos. The transaction has been approved by the antitrust authority but still requires Aneel's consent. Both sales are part of the company's strategy to address its financial crisis. BBF, which operates 25 thermal power plants with a generation capacity of 86.8 MW, approved in October 2025 a judicial reorganization request and an application to cancel its registration as a "B" class securities issuer with the Securities and Exchange Commission (CVM). Currently, the company's funds are judicially frozen, and it claims inability to pay fuel supply, transportation, and logistics companies. In May of this year, the Federal Public Ministry (MPF) and the Public Ministry of Rondônia (MPRO) filed an urgent protective request with the federal court to ensure the continuity of electricity supply to remote communities in Rondônia, citing risks of service interruption affecting approximately 9,000 riverside, quilombola, and rural residents outside the National Interconnected System (SIN). The MPF requested emergency measures, including temporarily replacing BBF with the distribution company Energisa Rondônia to operate the isolated system pending a new bidding process. In response to the MPF, the Federal Prosecutor's Office at Aneel stated that BBF's plant operations have been subject to ongoing regulatory actions in the states of Rondônia, Acre, Amazonas, Roraima, and Pará. According to the agency, the company's financial deterioration led to the issuance of Notice No. 81/2024, following the identification of operational failures exacerbated by the holding company's judicial reorganization. At that time, the technical department proposed revoking the authorization for BBF and its subsidiaries to supply electricity to isolated areas. The agency also stated that special measures had been taken to ensure supply. In March 2024, it authorized direct payment of fuel, transportation, and logistics costs related to BBF contracts to suppliers. In December 2025, this measure was expanded to include rental and transportation costs for generator sets, as well as the supply of lubricants and filters.

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