UCB Power to Invest R$ 380 Million in Factory Expansion
UCB Power Boosts Investments to Meet Growth in Renewable Energy Sector
Brazilian energy storage system manufacturer UCB Power has announced an investment of R$ 380 million through 2028 to expand its productive activities at the Extrema (MG) factory, aiming for local production of energy storage solutions.
The company intends to expand the manufacturing of its Battery Energy Storage System (UCB BESS), primarily to meet demands for backup, remote or isolated locations, systems linked to the agribusiness, and recently, the potential demand for equipment in the Capacity Reserve auction.
The investment will be carried out in two stages. In the first phase, scheduled for 2024 to 2025, R$ 40 million will be invested using own capital. For the second phase, projected between 2025 and 2026, land will be rented to accommodate production. The company will also use internal funds and expects to access external resources.
CEO George Fernandes told Valor that the decision to expand production was already made, but the announcement of the potential inclusion of battery systems in the auction was surprising, prompting the acceleration of the investment.
“We were caught off guard by the auction and had to catch up. The factory is to show the market that we are ready (…). We are favorable to partnerships in the auction and have managed to enter partnerships with wind, solar, and thermal energy providers in general,” said Fernandes.
Despite the uncertainty about the inclusion of battery systems in the event, the company observed an increase in sector demand, driven by the potential for energy storage generated from renewable sources.
UCB’s expansion follows market trends, with other companies like Moura and WEG also positioning themselves in this segment. Fernandes also highlighted the company’s intention to establish a manufacturing unit in Europe within three years, aiming to meet local demand.
With a factory in Manaus focused on portable batteries and the Extrema plant, the company aims to strengthen its presence in both the national and international markets. The investment is supported by Invest Minas and the Government of the State of Minas Gerais, through tax incentives and special credit line financing.
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