The Brazilian government under President Lula has proposed a 15-year agreement to purchase coal energy from the J&F Group, owned by the Batista brothers, at a price that is 50.2% above the average in recent auctions for similar energy sources. This deal is projected to cost R$ 859.7 million annually until 2040, totaling more than R$ 12 billion when adjusted for present value. The coal energy will be supplied by the Candiota plant located in Rio Grande do Sul, which is part of J&F's subsidiary, Âmbar.

This agreement has drawn attention because it was made obligatory following the approval of a controversial provision, known as 'jabuti', which was passed almost unanimously in both the Chamber of Deputies and the Senate in just 18 seconds at the end of last year. Although the legislation does not specifically mention J&F, it requires that coal-fired power plants with existing contracts as of December 31, 2022, are to be integrated into new contracts by December 2040. This development highlights the government's strategy to secure energy sources while also raising concerns about environmental impacts and the high costs associated with coal energy.

The details of the proposed contract were made available for public consultation by the Ministry of Mines and Energy, and the energy sector entities are presently analyzing the implications of this move. Critics might argue that such a contract favors private interests and undermines efforts towards renewable energy sources, putting the government’s commitment to environmental sustainability in question. Critics will likely keep a close eye on the government's energy policies as this contract progresses.