French sugar company Tereos plans tenfold expansion of power client base in Brazil
French sugar producer Tereos plans to expand its power contract sales in Brazil, targeting over 1,000 corporate clients within two years. The company generates electricity from sugarcane residue at six São Paulo plants and is shifting focus from regulated to open markets. The move aims to stabilize revenue and broaden its business network.
French sugar producer Tereos is planning a major expansion of its power contract sales in Brazil, aiming to grow its client base tenfold and reach more than 1,000 corporate customers within the next two years, as per the media report.
According to Samuel Custodio, who oversees the company’s power business in Brazil, the growth will come from selling to current sugar and ethanol clients, as well as potentially bringing in their suppliers, partners, and acquiring new businesses. “We’re planning to grow by offering power contracts to the companies we already work with, and by bringing in new clients through partnerships and business deals,” he told Reuters.
Tereos, the second-largest sugar producer in Brazil, also generates electricity from sugarcane residue at several of its plants. While the power division makes up a small part of its overall business in the country, it provides a steady source of revenue.
Custodio noted that this steady stream of revenue helps balance out the company’s other operations. “Even though it’s a smaller part of our business, the power segment gives us financial stability,” he said.
Tereos used to sell most of its electricity through Brazil’s regulated energy market, which operates under long-term government contracts. But as those contracts came to an end, the company began focusing on the free market, where companies can choose who they buy electricity from.
“This change allows us to offer energy deals directly to businesses looking for better options,” Custodio explained.
Tereos produces about 1,500 gigawatt-hours of electricity each year from its six plants in São Paulo state. This amount is enough to meet the company’s own energy needs, and the rest is sold to customers in the open market.
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Source : Chinimandi
