MPX, the Brazilian energy company which is part of the EBX Group, owned by Eike Batista, entered into a joint venture with Germany’s E.ON AG in mid January, for energy production. The joint venture company, expected to be finalised in the second quarter of the year, will rank as the largest private energy company in Brazil and will produce around 20% of Brazil’s current energy capacity. It will generate around 20,000 MW of energy and is entering into projects for both thermal and renewable energy in Brazil and Chile.

MPX currently has 11 MW of projects, mostly thermal energy. The joint venture marks E.ON’s first venture into the Brazilian market. E.ON had been a contender to acquire a stake in EDP of Portugal, whose renewable subsidiary is very active in Brazil, but lost out to China’s Three Gorges late last year.