ADV.L Regulatory News (ADV)

16 Jan 2007 07:01

Clean Energy Brazil PLC16 January 2007 Clean Energy Brazil plc ("CEB" or "the Company") Progress Update Following Recent IPOClean Energy Brazil plc, a company with a mandate to invest directly intoBrazil's sugar and ethanol industry, is pleased to update shareholders on theprogress of its initial proposed investment in Usaciga Acucar, Alcool e Energia Eletrica Ltda.("Usaciga") and other projects. UsacigaIn the short time since the Company's successful admission to AIM in December2006, CEB and its Investment Adviser, Temple Capital Partners, have made goodinitial progress in implementing the development plans for Usaciga including the broadening of the operational management team under the specific guidance ofMarcelo Junqueira, a director of CEB and CEO of Agropecuaria Orlando Prado DinizJunqueira ("Agrop"), CEB's agronomy and agricultural service provider. The Directors of CEB are also pleased to note the recent heavy rainfalls which willbe beneficial to the sugar cane crop in the forthcoming growing season. With respect to the development of the cogeneration electricity plant atUsaciga, work continues to progress to complete the plant in line with currentbusiness plans. Once complete this will enable Usaciga to supply surplus electricity to the electricity grid under the national Proinfa Agreementestablished to encourage the development of cogenerated electricity in Brazil.The Brazilian Government recently authorised Electrobras, the state electricity company, to extend the date by which certain cogenerated plants are required tobecome operational and therefore asked for revised documentation to be submittedto Electrobras. Usaciga duly submitted the relevant documentation. The directors of CEB have authorised an initial subscription of $12 million inUsaciga in connection with CEB's stated intention to make a total equityinvestment of $137 million (as more fully described in the Company's recentAdmission Document). For the protection of investors, the terms of thissubscription include the right to put the shares subscribed for onto the Bareafamily (the majority shareholder of Usaciga) at the subscription price in theunlikely event that the joint venture does not conclude. The planned consentsrequired to be obtained to enable the establishment of the joint venture holdingcompany in which it is intended CEB will ultimately hold a 49 per cent indirectinterest, described in the recent Admission Document, are now being activelyprogressed. As with all such consents, the timing of receipt of the finalapprovals rests with the various state authorities. A further update will beprovided in due course. Overall the Directors of CEB continue to be very encouraged by the opportunityafforded by the Company's investment in Usaciga. Other ProjectsThe Company has substantially completed preliminary legal due diligence on theproposed greenfield investment in Pantanal Agroindustrial Ltda. ("Pantanal")and is now finalising documentation with its investment partners. Furtherannouncements regarding Pantanal will follow. The Company is progressing with the application for an environmental licencewith respect to the Agua Limpa sugar cane greenfield distillery and expects toreceive this licence in due course. In addition Usaciga has entered into a preliminary agreement to develop afurther greenfield project in Parana State, of approximately 25,000 hectares,which is expected to crush up to 2 million tonnes of sugar cane per annum when completed. The Directors believe that this greenfield project, if undertaken,would have particular synergies with the existing Usaciga operations. Enquiries:Temple Capital PartnersPeter Thompson 020 7972 6629 NumisAndrew Dawber 020 7776 1500Tom FrostDavid Shapton College HillPeter Pantlin 020 7457 2020Paddy Blewer This information is provided by RNS The company news service from the London Stock Exchange