Brazil Potash signs MOU with Fictor Energia for $200M power line construction

Brazil Potash (GRO) announced the signing of a non-binding memorandum of understanding with Fictor Energia, part of the infrastructure division of Fictor Group. The MOU outlines terms for Fictor Energia to fund approximately $200M in power transmission construction costs for the Autazes Project while securing long-term energy supply and a $20M strategic equity investment. Under the terms of the MOU, Fictor Energia would undertake complete development, permitting, construction, and operation of the power transmission infrastructure to supply 300MW per year of approximately 80% renewable sourced Brazil grid electricity for the Autazes Project through a Build, Own, Transfer model. After 25 years of operation, ownership of the electrical power line and associated substation to be transferred to Brazil Potash. Fictor Energia assumes full responsibility for the approximately $200M power transmission capital expenditure, removing this major infrastructure investment from Brazil Potash’s construction budget. Additionally, Fictor Energia plans to invest $20M equity into Brazil Potash in two tranches: $2M upon signing of the definitive partnership agreement; and $18M upon receipt of the power line installation license. The parties will work toward execution of definitive agreements, with Fictor Energia immediately beginning preliminary engineering and regulatory processes. There can be no assurance that the definitive documentation related to the transactions set forth in the MOU will be agreed upon or signed, or that, if signed, such transactions will be consummated, or of the final terms and conditions related to such transactions. The power transmission infrastructure would be expected to be completed and operational by July 2029, aligning with the Autazes Project’s planned production timeline.