The relevance of the ESG concept to the Project
The global movement entitled ESG, which stands for Environmental, Social and Governance, makes direct reference to corporate responsibility for the management of companies. Adopting ESG principles means that the organization is committed to working on actions that respect the environmental, social and governance areas.
The financial market is not unaware of this issue either. Nowadays, ESG has become a new investment evaluation tool, as it allows to show a greater perspective of the real performance of a company, which goes beyond economic-financial metrics. See below which are the highlights and advantages of OXE Energia.
Considering the socio-environmental assumptions, the venture will use biomass fuel based on forest products and by-products, all licensed by the competent environmental agency. The main source of fuel will come from the planting of Acacia magium in an area of approximately 22 thousand hectares.
Silvicultural practices were licensed by the State Foundation for the Environment and Water Resources (FEMARH-RR) through the Environmental Impact Study, and its respective Environmental Impact Report (EIA-RIMA), in addition to a wide debate with society and public sector. This exotic species has reached maturity to proceed with the cut, and has a reasonable calorific value, therefore, suitable for immediate use. Forest residues from sawmills (from shallow cut and sustainable forest management plans) may also be used, but all must be licensed, including due tracking.
Another relevant factor is that the balance of atmospheric emissions is considerably low or even zero. The energy production through the combustion of forest biomass is extremely advantageous to the environment, because of its low emissions of nitrogen oxides (NOx), and does not emit sulfur oxide (SOx), not contributing for the formation of acid rain. The burning of biomass emits a rate of carbon monoxide (CO) in the order of 5,000 mg.m-3, a much lower standard compared to the landmark established by the National Environment Council (CONAMA), of 7,800 mg.m-3.
Regarding the carbon dioxide (CO2) released into the atmosphere, what the plant effectively emits of greenhouse gases, related to planting activities, will be fixed in the growth of the forest. If there was a continuation of diesel fueled energy production, the supply of 1 Megawatt Hour (MWh) would consume an average of 200 L/h, with each liter producing 2.6 kg of CO2. Considering the annual consumption of 40 MWh, if the energy alternative chosen was still oil-based, the emission would be approximately of 182 thousand tons of CO2 per year, something extinguished by OXE Energia’s project.
OXE Energia is equipped with its senior executives’ team, looking after the main disciplines of the project. It was also a concern to have by its side specialized advisers who are references in their areas of expertise.
The team of shareholders has a renowned background considering infrastructure projects in the country, what has contributed to the hiring of competent and diligent suppliers, advisors and consultants to make this outstanding project come true. In addition to the partnerships, there was a concern with the structuring of committees responsible for the company’s financial, operational and engineering areas since the beginning.