The Inter-American Development Bank today announced the approval of a $400 million loan to SOL Coqueria Tubarao S.A. for an integrated coke plant and cogeneration electric power facility in the city of Vitória, State of Espírito Santo, Brazil.
The project includes the design, development, construction, operation and maintenance of facilities to produce 180-megawatts of electric power and approximately 1.6 million tons of coke per year. The power and coke will be used by the project’s shareholders and any excess power will be sold to the spot market.
Financing consists of a $50 million loan from the IDB’s ordinary capital complemented by a $350 million “B-loan” under a club deal being led by ABN Amro and BBVA.
The shareholders of the borrower are Companhia Siderúrgica de Tubarao (CST), Belgo Siderúrgica S.A. and Sun Coke Company.
The project will utilize state-of-the-art integrated heat recovery technology that reduces chemical by-products and hazardous solid waste and converts waste heat into steam, which is used to generate electricity, while producing stronger coke of larger size, more efficient in blast furnaces. This proprietary Sun Coke innovative technology is a leader in the industry.
This initiative will contribute to economic growth and competitiveness through the efficient production of electricity and coke. The project has created 4,600 jobs during its construction and will create 250 new permanent jobs during operation.
The 10-year loans have a 36 month grace period. Total project costs are $745 million.
IDB participation in the project helped mobilize access to necessary long-term financing. It also required the highest environmental, social, health and safety standards and procedures for construction and operation.