French sugar company Tereos wants to expand its power business in Brazil

An executive from Tereos, a French sugar company, said that the company plans to increase its client base in Brazil for power contract sales by tenfold over the next two years. The goal is to reach 1,000 corporate clients.

Samuel Custodio is the head of power commercialisation at Tereos Brazil. He said that the growth would be driven by cross selling to existing sugar and alcohol clients, as well as to potential suppliers and partners, and acquisitions.

Why it's important

Tereos is the second largest sugar producer in Brazil. Some of its Brazilian facilities produce power using sugarcane biomass.

Custodio, in an interview with Tereos on Wednesday, said that the power business is a reliable source of revenue for Tereos even though it only represents a small part of its total revenue in Brazil.

ADDITIONAL CONTEXT

The group sold the majority of the power through the Brazilian regulated electricity system, which was mainly run by concessions.

As these contracts expired the company shifted its attention to the unregulated power market where corporate clients could choose their own energy suppliers.

By the Numbers

Tereos produces approximately 1,500 gigawatt hours of electricity per year at six plants located in the Brazilian state of Sao Paulo. The company can sell any surplus. This production covers all of its operational needs. Leticia Fucuchima reported. Writing by Andre Romani. Jane Merriman (editing by Andre Romani)

(source: Reuters)