SAO PAULO, Feb 9 (Reuters) - Agricultural commodity merchant Louis Dreyfus Company (LDC) on Thursday unveiled that late last year it began operating as a trader in the Brazilian free energy market, according to a statement.
The company said it intends to expand its activities in the sugar and ethanol market using energy from sugarcane biomass cogenerated by mills.
The trader intends to fully service "the more than 40 groups of mills with which we already originate sugar and ethanol, and thus meet the demand from LDC and its clients, increasing the share of renewable energy in the composition of a more competitive and sustainable energy matrix," said Mario Barbosa, head of sugar for North Latin America.
Currently, LDC's facilities in Brazil purchase on the free market 90% of the energy they use, about 35 average monthly megawatts.
Brazil's free energy market is expanding, LDC said, citing data from the Brazilian Association of Energy Traders (Abraceel) that showed a 17% increase in 12 months.
The main growth drivers are "competitive prices, predictability of on-demand contracting and the option for renewable energy sources," said Barbosa.
The free energy market currently accounts for more than 37% of total electricity consumption in Brazil and has already drawn 97% of the biomass energy generated in the country, LDC said, citing Abraceel. (Reporting by Nayara Figueiredo; Writing by Peter Frontini; Editing by Chris Reese)
