August 22, 2008

MPX Energia, Energias Do Brasil to Jointly Develop Pecem-II TPP

MPX Energia has signed a memorandum of understanding with Energias do Brasil for the joint development of the Porto do Pecem II thermal power plant. The agreement foresees the acquisition by Energias do Brasil of a 50% stake in the project.

The Pecem-II thermal power plant (TPP) will have an installed capacity of 360MW and will be located in Sao Goncalo do Amarante in the Brazilian state of Ceara.

The first phase of UTE Porto do Pecem TPP (Pecem-I), a 720MW coal-fired plant, is an equal-stake partnership between MPX and Energias do Brasil. The Pecem-I TPP sold an average of 615MW in the A-5 energy auction, held in October 2007 and its construction is under way.

MPX Energia has also informed that the Ceara State Environmental Superintendency issued the preliminary license for Pecem-II in July 2008. The license enables the participation of the unit in the next new A-5 energy auction, expected to occur in September 2008.