Cemex has announced the creation of a new energy division, Cemex Energia, which will develop a portfolio of power projects in Mexico. Through this portfolio, the division hopes to supply some 3 – 5% of Mexico’s electricity requirements over the coming 5 years.
The first major milestone for Cemex Energia is a joint venture with Pattern Development, a subsidiary of Riverstone. The JV will draw on Pattern’s experience of developing projects to build up the power portfolio, and Pattern will also share development costs.
Cemex Energia will have the option to take minority equity stakes in the energy projects developed by the joint venture. The construction materials company has stated that it will not consolidate any projects from this JV and any debt incurred to fund such projects will have no recourse to Cemex. Furthermore, Cemex expects to contribute around US$30 million into its new energy division over the next 5 years.
“We are very enthusiastic about Mexico’s energy sector future, and we will leverage on our experience in developing projects that benefit the country,” stated Fernando A. Gonzalez, CEO of Cemex. “Our new energy division will be led by Luis Farías and his experienced team.”
Commenting on the agreement with Pattern, Luis Farias, Cemex Vice-President of Energy and now head of Cemex Energia, said: “We are very pleased to sign this joint venture with Pattern Development. This is a mutually beneficial deal, that will help us leverage the use of our knowledge to continue our industry-leading expertise in the use of clean energy and alternative fuels.”
“Through this strategic partnership with Cemex Energia we have set a goal of jointly developing 1000 megawatts of renewable generation in Mexico over the next five years,” explained Mike Garland, President and CEO of Pattern Development. “Mexico is a natural expansion market due to our development headquarters in Houston and our team’s experience in developing over 1000 megawatts of wind projects in California, New Mexico and Texas. We enter the rapidly growing renewable energy market in Mexico with a strong and experienced local partner in Cemex, a global leader in building materials, which has a successful track record of developing projects in Mexico.”
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/20022015/cemex-announces-creation-of-cemex-energia-378/