DealsMay 19, 2026, 09:20 AM
Brazil Potash signs 28-year BOOT power deal, saves $33M upfront
AI Summary
Brazil Potash signed a non-binding 28-year Build, Own, Operate and Transfer (BOOT) Memorandum of Understanding with Gera Center for a 20 MW modular diesel power plant. This plant will provide primary power during the Autazes Potash Project's construction and then serve as an emergency backup for 23 years. The BOOT structure shifts approximately $33 million in initial power generation investments to operational costs over 28 years and is expected to save an estimated $10 million compared to the project's Pre-Feasibility Study.
Key Highlights
- Brazil Potash signed a non-binding 28-year BOOT MoU with Gera Center for power supply.
- A 20 MW modular diesel plant will provide primary power for construction and 23 years of backup.
- The BOOT structure transfers approximately $33 million in initial power investments to operational costs.
- The deal is expected to generate estimated net savings of about $10 million over 28 years vs. PFS.
- Gera Center was selected through a competitive process involving 12 companies.
- Power supply mobilization is expected within 120 days of definitive contract signing.
- The contract ensures 98% operational availability during the backup phase.
- This is one of up to five BOOT contracts Brazil Potash is structuring for project financing.
Price Impact
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