The Lages Cogeneration Unit, located in the municipality of the same name in the mountainous interior of the state of Santa Catarina, was a landmark in biomass-fired cogeneration in Brazil. The plant has a single generator unit with a capacity of 28 MW, using as its source of power, timber waste produced in the region. The physical guarantee for commercialization is 11.1 average MW.

The Lages Cogeneration Unit began operations in 2003 and is part of the United Nations Clean Development Mechanism (MDL). The authority for operating the thermoelectric plant expires in 2032.