Appian signs Brazil clean energy partnership and equity investment to accelerate portfolio decarbonization strategy

June 19, 2023
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Appian Capital Advisory LLP (“Appian” or the “Company”), the investment advisor to long-term value-focused private equity funds that invest solely in mining and mining-related companies, and Detronic Energia (“Detronic”), an experienced renewable energy solutions provider in Brazil, are pleased to announce a clean energy partnership in Minas Gerais, Brazil.

Appian has entered into a joint venture partnership with Detronic to develop a portfolio of 20 ready-to-build solar parks. The partnership will develop parks with a total capacity of 62.4MWp in Minas Gerais. As a leading mining state in Brazil, Minas Gerais is one of the most attractive regions for photovoltaic projects in the country and the world, due to its excellent solar irradiation and fiscal incentives. In addition to its planned projects in the state, Appian and Detronic are currently evaluating opportunities for additional solar farms at its individual mine sites across Brazil given the high suitability of the Detronic design.

The Detronic Appian partnership is a core element of Appian’s clean energy and mining adjacent strategy to support the business’ ambitions to decarbonise its operations and simultaneously improve margins.

The energy pricing environment, low project risk execution and the fiscal benefits for solar generation in Minas Gerais are key benefits of the Detronic partnership, which is set to deliver attractive risk adjusted returns for Appian’s investors. Minas Gerais is the largest distributed generation market in Brazil with 2.5GWp already installed. Furthermore, the development of the renewable energy portfolio in Brazil will serve as a hedge and reduce Appian’s exposure to future energy price rises at its operations in the country.

Alongside its environmental and economic benefits, this partnership will enable Appian to further develop its inhouse clean energy and sustainability expertise, particularly around incorporating renewable projects into Appian mine sites going forward.

Detronic’s business model is fully integrated covering everything from project development to final energy distribution and operations. With this 360° structure Detronic is able to support across the value chain for the development of clean energy portfolio.

The development of the 20 solar sites in Minas Gerais, which will be led by Detronic’s dedicated construction arm, is set to begin in Q2 2023. Detronic has an established track-record of developing solar generation on time and on budget, using a standardized design and repeatable execution methodology which is also suitable for Appian’s mines sites. It has 34 solar farms recently built and grid connected as well as a further 47 under construction. Detronic’s current operations are off-setting 6,263 tonnes of CO2 per year.

Michael W. Scherb, Founder and CEO of Appian, commented: “This is a significant milestone for Appian’s sustainability ambitions. As a leading investor in mining, we see ESG as core to the delivery of our strategy and the success of our investments. By partnering with an industry expert in Detronic, we have demonstrated that providing clean energy to our portfolio in Brazil is a priority, alongside delivering attractive, risk-adjusted returns to our investors in the process. I look forward to working with our team to deliver on the opportunity that this partnership presents for our business.”

Andre Barreto, Founder and CEO of Detronic, added: “Working with Appian is the result of significant planning and preparation. We live in a connected and electrical world, and renewable energy sources are the protagonists of a sustainable future. This is a partnership built on purpose, and we are eager to combine the efforts of two incredible teams to achieve common goals and results. Appian’s strategic vision and global presence will be key foundations for the development of new projects across the planet.”

About Appian

Appian Capital Advisory LLP is the investment advisor to long-term value focused private capital funds that invest solely in mining and mining related companies.

Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing 6,300 employees.

Appian has a global team of 65 experienced professionals with offices in London, Toronto, New York, Lima, Belo Horizonte, Montreal, Perth, Mexico City and Dubai.

For more information please visit www.appiancapitaladvisory.com, or find us on LinkedIn, Twitter or Instagram.

About Detronic Energia

Detronic Energia is the most complete hub of renewable energy solutions in Brazil. Leveraging its vertically integrated structure, Detronic Energia provides innovative arrangements for partners and energy consumers of different sizes and profiles. The company has an ecosystem to connect all market players and deliver tailored customer solutions. Detronic Energia holds more than 100 MWp of installed or under construction facilities capacity, around 140 MWp ready-to-build projects and has more than 4,200 active customers in the local energy market.

Detronic has a strong ESG drive and is part of the United Nations Global Compact. Detronic Energia believes in a new way of doing business to transform people’s lives.

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