Anglo American’s Power Purchase Agreement with Casa dos Ventos’

Trench Rossi Watanabe (Baker & McKenzie LLP) advised Casa dos Ventos Energias Renováveis in a corporate and contractual transaction, which resulted in a long-term Power Purchase Agreement (“corporate PPA” or “Corporate PPA) for Anglo American, one of the largest mining companies in the world. The contract is considered the largest corporate PPA for renewable energy in Brazil, with the participation of Casa dos Ventos lawyers in the project. Ulhôa Canto, Rezende e Guerra advised Anglo American

The sold energy will be produced by the Rio do Vento wind farm in Rio Grande do Norte. The project is large in the wind market: it will be built and operated by eight Special Purpose Entities (SPE), with a total initial investment (CAPEX) of R$ 2.4 billion and an estimated capacity of 504 megawatts. The contract signed with Anglo American ensures the energy to be produced in three of these SPEs, which will be responsible for supplying around 30% of all the energy consumed by the mining company in the country as of 2022.

The contractual structure is innovative, since it allows the participation of the energy buyer as a shareholder of the SPEs. In addition to the Corporate PPA, the parties signed a purchase option of SPE shares, whereby the mining company may become a self-producer of energy.

The model structured by Casa dos Ventos for the Rio do Vento complex allows the sale of energy to large corporate consumers. Footwear manufacturer Vulcabrás Azaléia and Tivit, a Brazilian technology multinational, were companies that have already joined the structure. Tivit was also assisted by Trench Rossi Watanabe, and will have all of its electricity demand met by the complex from 2022 onwards.

Trench Rossi Watanabe advised Casa dos Ventos Energias Renováveis with a team led by José Roberto Martins (Picture) and including Paula Senna Ganem.

Ulhôa Canto, Rezende e Guerra advised Anglo American PLC with Isabel Lustosa, Pedro Chueiri, Alberto Büll, Pedro Cordelli and Lais Goldenstein.

Involved fees earner: Paula Bittencourt Senna Ganem – Trench, Rossi and Watanabe Advogados; José Roberto Martins – Trench, Rossi and Watanabe Advogados; Alberto Büll – Ulhôa Canto, Rezende e Guerra – Advogados; Pedro Chueiri – Ulhôa Canto, Rezende e Guerra – Advogados; Pedro Cordelli – Ulhôa Canto, Rezende e Guerra – Advogados; Lais Lefèvre Goldenstein – Ulhôa Canto, Rezende e Guerra – Advogados; Isabel Lustosa – Ulhôa Canto, Rezende e Guerra – Advogados;

Law Firms: Trench, Rossi and Watanabe Advogados; Ulhôa Canto, Rezende e Guerra – Advogados;

Clients: Anglo American plc; Casa dos Ventos Energias Renováveis S.A.;

Author: Ambrogio Visconti.