Omnigen Energy and Appian Capital Advisory LLP have announced that they have secured BRL 250 million in financing from Itaú BBA to complete the development of 20 small-scale solar power plants in Minas Gerais, Brazil. This project, with a total capacity of 62.4 MWp, represents a key step in Appian’s strategy to strengthen its presence in the Brazilian energy market.
Structuring Financing
The collaboration between Omnigen and Itaú BBA is the result of a structured process involving several stakeholders. The financing covers the remaining development costs of the solar power plants, ensuring that the project is fully financed until it goes into production. The robustness of the project’s fundamentals was validated by in-depth technical, legal and financial due diligence.
Strategic and economic benefits
The solar power plants will diversify and secure the energy supply of Minas Gerais, a key market for distributed generation in Brazil, with 2.5 GWp already installed. The favorable tariff environment and tax advantages for solar production in Minas Gerais will help provide attractive risk-adjusted returns for Appian investors.
Status
Omnigen’s engineering, procurement and construction program is progressing on schedule, with several workflows running in parallel. Development of the solar power plants is now 50% complete and on budget.
Strategy & Vision
Michael W. Scherb, founder and CEO of Appian, said that obtaining this funding marks a significant milestone for the future of the project, underlining its importance in Appian’s strategy for securing critical supply chains. Milson Mundim, CEO of Omnigen, added that this financing will support the development of the solar power plants through to commissioning, in partnership with Itaú BBA.
This R$250 million project to develop 20 solar power plants in Minas Gerais enables Omnigen and Appian to strengthen their position in the Brazilian energy market. With the plants now financed all the way through to operation, the project is well positioned to deliver significant economic benefits, while supporting Brazil’s energy transition.
