Brasilia Eager to Fund Energy projects

Brasilia Eager to Fund  Energy projectsBrasilia Eager to Fund  Energy projects

Energy Minister Hamid Chitchian explored wide-ranging areas for economic and energy cooperation with Brazil in a meeting with the country's minister of development, industry and foreign trade, Armando Monteiro, late on Tuesday.

Describing the meeting as a platform to expand ties in the water and electricity industries, Chitchian said, "Brazilian companies can finance or build hydroelectric plants in Iran under BOT (build-operate-transfer) contracts," IRNA reported.

"Brazilian firms can also contribute to establishing high-voltage 765 kilovolt and 800 kV power lines in the Islamic Republic."

Chitchian noted that Iran is planning to expand power production capacity by 50,000 megawatts by 2025, raising the country's total electricity output to more than 120,000 MW.

"To do so, it can take advantage of Brazil's potential and expertise in the power sector," he said.

The country's nominal power generation capacity currently stands at around 74,000 MW, with 61,000 MW coming from thermal power plants, 12,000 MW from hydroelectric plants and only 1,000 MW from nuclear power.

Chitchian said modernizing the national power grid and distribution networks is a top priority in the post-sanctions period.

Monteiro put Brazil's power production capacity at 140,000 MW and said the country is planning to double the amount under a 15-year development plan.

Brazil meets nearly 85% of its power demand from renewable energy sources, of which roughly 75% are generated by hydroelectric plants.

The South American country also produces part of its electric power from burning bagasse, an unconventional feedstock, at its power plants. Brazil is the biggest producer and exporter of sugarcane in the world.

Monteiro also called for establishing a joint economic commission with Iran to accelerate trade ties after the lifting of sanctions against the Persian Gulf country. He also asked for preparing the grounds for cooperation with Iran's MAPNA Group–a major consortium of Iranian industrial companies.

  Turbine Trade

Brazil's thermal power plants burn oil, gas and feedstock, and the country is planning to expand gas turbine power plants, consequently making room for cooperation with Iran, one of the world's leading gas turbine manufacturers.

According to Iranian officials, the country is the six biggest producer of gas turbines in the world.

The two sides also explored opportunities for cooperation and investment in water and wastewater sectors.

In a separate meeting on Tuesday, Oil Minister Bijan Namdar Zanganeh discussed grounds for cooperation with Monteiro, including the export of liquefied natural gas to Brazilian terminals and jointly establishing an oil refinery with a processing capacity of 300,000 barrels per day in the South American country.

Monteiro on Wednesday put an end to three days of high-level talks with senior Iranian official in Tehran, in which the two sides explored grounds for cooperation in trade, energy, banking and agricultural sectors. He was accompanied by Brazilian Minister of Mines and Energy Eduardo Braga and 35 Brazilian traders and economic players.

Iran-Brazil trade stood at $1.4 billion in 2014, but the two sides see the potential to raise that figure to $5 billion a year.