Brazil Potash’s 28-Year BOOT Power Deal Shifts $33M Capex, Yields $10M Savings
Brazil Potash signed a 28-year BOOT MOU with Gera Center for a 20MW modular diesel plant, shifting US$33 million of upfront power-generation capex to operating costs and securing 120-day mobilization with 98% availability during its 23-year emergency backup role. It delivers US$10 million in net savings over contract life versus pre-feasibility estimates.
1. MOU Terms and Operational Plan
Brazil Potash will deploy 63 containerized modular diesel generator sets totaling 20MW, phased from 10MW to 20MW over the first year. The plant serves as the primary construction power source for two mine shafts and transitions into a 23-year emergency backup system, with a contractual 98% availability and two-hour response time.
2. Financial Structure and Savings
Under the BOOT agreement, approximately US$33 million of power-generation capital shifts from upfront construction budgets to operating expenses spread over 28 years. This model generates an estimated US$10 million in net savings compared to the pre-feasibility study estimates and supports the company’s broader strategy to fund non-core infrastructure via BOOT arrangements.
3. Timeline and Next Steps
Parties aim to finalize definitive agreements in the coming months, targeting installation and power delivery within 120 days of contract execution to align with the Autazes Project’s shaft-sinking schedule. Ownership of the power infrastructure will transfer to Brazil Potash at the end of the 28-year term.