The dirty game of Eike Batista

The dirty game of Eike Batista

German multinational wants to increase their profits polluting Brazil

E.on will produce coal-powered energy in Brazil, along with the MPX of Eike Batista, due to the crisis and protests in Europe. The investment will be financed with money from BNDES

The MPX company, whose majority shareholder Eike Batista, who has been denounced as “orange” big imperialist capital, announced a joint venture with the German power industry company e.on. The new company will be the largest private power generating company of Brazil, with capacity to generate 20 gigawatts and plans to build 11 coal and gas power plants in Brazil and Chile.

The initial investment of e.on will be approximately $ 850 million with which to hold 10% of participation in the Eike Batista EBX Group of. According to the statement from MPX, “MPX will contribute to the joint venture, the book value, 50% of the thermal Ventures portfolio without agreement of purchase and sale of energy and, Additionally, in the case of the Açu project, e.on will have a call option on behalf of the joint venture of an additional interest of 38.9%, thereby allowing each of the partners reach a 50% economic interest in the project”.

E.on said that Brazil is on the priority list of their “investments”. The targeting of E .on’s investments match the sharp drop of its profits in 2011 in Germany due to paralysis of the sector after strong popular mobilizations have questioned the lack of adequate investment in security at German nuclear plants after the crash of the Fukushima nuclear power plant in Japan that happened in March last year. Additionally, there is exactly one year, e.on has caused a serious accident, which became known as “black tide”, when about 45,000 liters of fuel oil were spilled in the sea of Sardinia, in Italy, during an operation of oil offloading to a central thermoelectric of e.on, causing a huge damage to the ecosystem of the region.

Power generation at a very high environmental cost

<tl> the new company should generate 20 gigawatts in term not defined. This total energy generation means 20% of what is produced today in Brazil. To get the concept, the Belo Monte hydroelectric plant promises to generate 11.3 GW. Of the projects that are being planned, a total of 11 gigawatts will be generated based on coal. Coal is a fossil fuel whose burning releases high levels of carbon dioxide and produces highly toxic effluents, such as mercury and other heavy metals such as vanadium, cadmium, arsenic and lead, ostensible contributing to global warming and acid rain. In the 50, London suffered a smog that became known as “the great fog of 1952”, caused by the burning of coal.

According to MPX and e.on, coal would have been chosen because, supposedly, would use a technology for “clean-burning”, known as “Clean coal technology”. This technology was invented by the multinational oil company Shell, which has caused enormous environmental disaster in Nigeria (Niger Delta) and in other countries, is used in China, being one of the villains of the high emission of toxic gases in the country, and in Germany, and, supposedly, would reduce in 89% of carbon dioxide emissions.

Many environmentalists and scientists have a very different scenario to propagandeado by MPX. According to the well-known environmentalist Dan Becker, the Sierra Club, this method has not been evaluated with depth, does not eliminate the extraction process of the raw material, which on top of the methods employed currently produces massive soil degradation, resulting in high costs with carbon sequestration and leaves many uncertainties for the management of the end result that are pollutants and radionuclides. According to Greenpeace, to feed this type of “technology” according to the own thermoelectric would use approximately 40% of its energy to perform this type of process which would result in the deployment of more thermoelectric energy and, consequently, the largest environmental impact that is dropped in the ratings of MPX and e.on.

Another justification for the burning of the coal would be technology CCS (Carbon Capture and Storage), which is under development. Your goal is to carbon capture and storage in underground reservoirs, but the deadline for their release is productive of twenty years. In fact, the imperialists want is that multinationals keep the dependence of a cheap source of energy from which they obtain high rates of profit, but highly polluting, coal, with long-term promises. Probably, the results do not pass the same promises, because as is demonstrated by numerous projects of those multinationals, his true goal is to generate high rates of profit at any cost and in the short term.

The President of and. On, Teyssen, praised the financing model of the Brazilian electric sector and reported that the BNDES (National Bank of economic and Social Development) and the World Bank will be sponsors of the projects of the joint venture. “Brazil has an interesting financial system, the BNDES funds 75% of the process. So we can make much larger investments without using our resources “. Obviously, this model is a true wonder to multinationals imperialists! This type of government policies of PT show their submission to the imperialist model of production of commodities at any cost, regardless of the degradation and the spoliation of natural and human resources of the country. Its main policy is the production of resources, at any price, to keep the public debt services payments to financial speculators.

In recent days, Eike Batista received $ 227,9 million referring to the bridge loan granted by BNDES, which is part of the $ 2.7 billion that will be destined to the construction of shipbuilding Unit of Brazil (UCN Açu), in the Açu Industrial complex, which includes steel, shipyard, cement industries, automaker and auto spare parts industry, among others. And the energy of 1 will be moved to Acu complex mineral coal (whose production and transportation will be made by other companies in the Eike Batista group). The loan has term of 18 months and rate of approximately 5.4%, another donation from the Government of the UK!

In Germany, the e.on multinational faced large demonstrations when announced a few years ago, that would increase the number of coal plants. In 2010, with the deepening of the capitalist crisis in Europe, the German multinational announced that it wanted to have 25% of its revenues outside Europe and chose Brazil as the first destination for their investments, because as you know the environmental regulations are more loose in Germany; just check the increasing deforestation of the various Brazilian biomes, the adoption of the new Forestry Code and the Legal Amazon Program, so as to reverse the land reform Government of the PSDB in Pontal do Paranapanema in the State of São Paulo, where the lands that should be destined for agrarian reform will be delivered to landowners.,o.html

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