Global investment giant BlackRock, through its Climate Finance Partnership (CFP) fund, is set to enter the Latin American market with the acquisition of a significant minority stake in Brasol, a prominent Brazilian renewable energy company, according to an announcement by BlackRock on Friday.
The exact size of the stake has not been disclosed, but CFP's portfolio manager, Anmay Dittman, revealed that it will fall just short of 50%. Dittman described this investment as a “test case” for future endeavors in the Latin American region and expressed enthusiasm about the prospects. Speaking at a press conference, Dittman stated, “We're really excited to get a little bit of a beachhead in Latin America and hoping that we'll find many more great investments.”
The Climate Finance Partnership, a public-private fund, counts the French, German, and Japanese governments among its partners, along with several U.S.-based organizations. It has a primary focus on climate infrastructure in emerging markets.
While the specific financial details of the transaction remain undisclosed, Brasol's CEO, Ty Eldridge, emphasized the significance of the investment in supporting the company's ambitious plans to expand its energy generation capacity. Brasol is aiming for a one-billion-real ($200.38 million) expansion.
Brasol currently operates renewable energy assets and provides leasing services to commercial and industrial clients. The company intends to enhance its energy generation capacity by an impressive 200 megawatts over the next 18 months, with a particular focus on solar energy, which Eldridge described as their “bread and butter.” However, Brasol is also exploring other technologies, such as electric vehicle charging, as part of its broader energy transition portfolio.
Eldridge stated, “I can't tell you where every dollar is going to go, but certainly it'll go into this broad portfolio of energy transition assets, and it'll be certainly more than just solar power.” This expansion reflects the company's commitment to diversifying its renewable energy offerings and supporting the transition to a more sustainable energy landscape in Brazil and beyond.