Carbon credit opportunities drive Pacific Hydro’s entry into Brazilian market

Source: Pacific Hydro Media Release (15 February 2007)
Leading Australian renewable energy company Pacific Hydro announced its entry into the Brazilian energy market following the successful acquisition of German wind subsidiary, SES Ltda. The company will now be known as Pacific Hydro Brazil.
Pacific Hydro CEO, Rob Grant said he was excited about Pacific Hydro’s future in Brazil. “Having ratified Kyoto and with a strong policy framework to support the implementation of renewable energy, the Brazilian market provides enormous opportunities for Pacific Hydro to expand its Latin American operations and diversify its portfolio of projects.”
Pacific Hydro has 1800MW of clean energy assets around the world at various stages of development. While growth in Australia has been held back due to Australia not signing the Kyoto Protocol, the company continues to look internationally for investment opportunities, namely in countries that are enacting positive policies to reduce greenhouse gas emissions and address global warming.
“Pacific Hydro has an established base in Chile with the successful operation of hydro assets and substantial activity in new run-of-river hydro developments”, explained Mr Grant. “Our expansion into Brazil is a logical next step for Pacific Hydro and is another demonstration of the value that renewable energy brings in supporting growing economies in a sustainable manner.”
Pacific Hydro’s acquisition of SES Ltda follows the announcement by the Brazilian Government to introduce a policy framework (known as “PROINFA” to increase renewable energy in the country to 10% by 2020).
“While the Brazilian market is currently hydro-dominated, it has excellent wind resources like Australia”, said Mr Grant. “This acquisition will see us investing more than half a billion Australian dollars in the coming years to develop over 300MW of clean energy assets in Brazil. This will not only assist Brazil in meeting its growing energy demand, but also its target of 10% renewable energy by 2020.”
Read more about Pacific Hydro

CVRD acquires AMCI Holdings Australia

Source: Companhia Vale do Rio Doce press release (26 February 2007)
Companhia Vale do Rio Doce (CVRD) announces that it entered into a purchase and sale agreement to acquire 100% of AMCI Holdings Australia Pty (AMCI HA) for AUD 835 million. AMCI HA is a privately held company headquartered in Brisbane, state of Queensland, Australia, which operates and controls coal assets through unincorporated joint ventures. CVRD's stake is equivalent to a nominal production capacity of 8.0 million tons of coal (predominately coaking coal) and reserves of 103 million tons. AMCI HA had net debt of AUD 157 million as of November 30, 2006. Located in two of the best Australian coal producing regions - Hunter Valley, state of New South Wales, and Bowen Basin, state of Queensland - AMCI HA's main coal assets are the following: (a) Integra Coal Joint Venture (Integra Coal), Hunter Valley, open cast and underground mines. AMCI HA owns 61% of Integra. (b) Carborough Downs Joint Venture (Carborough Downs), Central Queensland, underground mine ramping up to full capacity in 2009/2010. AMCI HA owns 80% of Carborough Downs. (c) Isaac Plains Joint Venture (Isaac Plains), Central Queensland, open cast mine ramping up to full capacity by 2009/2010. AMCI HA owns 50% of Isaac Plains. (d) Broadlea Joint Venture, Central Queensland, open cast mine, which is 100% owned by AMCI HA. (e) An extensive and highly prospective coal exploration portfolio that is also included with this acquisition - potential for 3.0 billion tons of non-audited mineralized material. Investment in the coal business is an important part of CVRD's growth strategy. Prior to this acquisition, we had already have minority stakes in two Chinese companies - Shandong Yankuang International Coking Co. and Henan Longyu Energy Resources Ltd. - and we are presently concluding a feasibility study to develop a large coal deposit in Mozambique, Moatize, and a pre-feasibility study of the Belvedere deposit in the Bowen Basin, State of Queensland, Australia. The acquisition of AMCI HA creates a strong growth platform to develop CVRD's coal business and contributes to diversify our product portfolio, providing simultaneously geographic diversification into an investment-grade and one of the richest natural resources countries in the world, Australia. It allows access to operating assets, with logistics infrastructure and high growth potential. Jointly with world-class mining assets, the acquisition of AMCI HA brings a highly skilled and seasoned team in coal project development, operations and marketing, which will be important to support our expansion.
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Cachaça (ka-SHA-sa), The Brazil's essense in a bottle has become fancy around the world.

Maybe you have already tried "caipirinha" (kai-pee-reen-yah), the national drink of Brazil made with cachaça, lime, sugar and ice, so you have to know that all cachaça originates in Brazil, where almost 400 million gallons are consumed annually, compared with 1% of this volume outside the country. Cachaça is gaining even more exposure in restaurants and hotels around the world and USA is actually the fastest-growing market. There are many business opportunities surrounding this distilled beverage.
For more information click here and read the article in USA Today website

The importance of biofuel rises in the international scenery.

The demand for alternative fuels grows in times of global warming and high oil prices.
Brazil is the world's largest exporter and biofuel industry leader. With more than 30 years of experience in sugar-cane ethanol, Brazil has achieved the highest level of oil independence of any country.
For more information click here and read the article in Seattlepi website.

Brazil exports grew 16 percent in 2006.

Accordin to the Brazilian trade ministry Brazil posted a record $46.08 billion trade surplus for 2006 due to growing demand for the products it sells abroad. Imports rose 24 percent to $91 billion.
For more information click here and read the article in Reuters website.

Australia's small-to-medium sized enterprises can export too.

Import and export business news many times sounds just like big deals of millions of dollars, but the recent survey from government trade promoter Austrade and census from the Australian Bureau of Statistics show a growing number of Australia's small-to-medium sized enterprises (SMEs) exporting to emerging economies such as Brazil.
For more information click here and read the article in SMH website.

The appreciation of the Brazilian Real and international businesses.

The Brazilian currency influences many aspects of international trade and other businesses. Whilst prices of tour packages to Rio de Janeiro are rising due to the appreciation of Real the international investors are thinking Brazil is heaven for capital.
For more information click here and read the article in Bloomberg website.

Australia’s Alumina expects to invest more money in Brazil.

Alumina and Alcoa's AWAC joint venture expects to pay $1.7 billion to expand Brazil operations. The appreciation of the Brazilian Real has played a major role in the cost increase, said Alumina chief executive John Marlay.
For more information click here and read the article in MarketWatch website.

Brazil’s president called rich nations to discuss Doha process.

In the last World Economic Forum in the Swiss resort of Davos (January 2007) Mr. Lula talks about issues of trade tariffs and The Doha Development Agenda was launched in 2001. Brazil was ready to make concessions if Europe and the US were prepared to move too, said the Brazilian president.
For more information click here and read the article in BBC website.