A Equinor, a multinational in the energy sector, based in Norway, signed, this Friday (21), a agreement with Denham Capital to acquire Rio Energy, an onshore renewable energy company in Brazil.
The acquired portfolio consists of the Serra da Babilônia 1 onshore wind farm, with a capacity of 0,2 GW, in the state of Bahia, and a portfolio of photovoltaic projects in pre-construction of 0,6 GW, as well as a portfolio of projects of around 1,2 GW in onshore solar and wind energy. Each gigawatt is capable of supplying energy to 500 homes.
The operation reinforces Equinor's position as a company that invests in the Brazilian energy market. “Through Rio Energy, Equinor will assume a relevant position in the Brazilian renewable energy sector, a robust and fast-growing sector.”
“Rio Energy will allow us to accelerate the generation of renewable energy and, consequently, cash flow. With it, we now have a platform for growth, while at the same time adding technical capacity and an attractive portfolio of projects”, says Pål Eitrheim, executive vice president for Renewable Energy at Equinor.
In recent years, Equinor has acquired several renewable energy companies, such as Wento in Poland, BeGreen in Denmark, Noriker Power in the UK and East Point Energy in the US, with the aim of offering flexible energy in priority markets for renewable energy. company.
“For Equinor, having Rio Energy on board will accelerate our ability to further develop our portfolio as an energy company in Brazil. By establishing a relevant position in renewable energy in the country, together with a robust oil and gas portfolio, we are supporting Brazil's ambitions towards a diversified energy matrix”, says Veronica Coelho, country manager at Equinor in Brazil.
Following the transaction, and after the exclusion of some assets by Denham Capital, Equinor will own 100% of Rio Energy, maintaining the current board of directors and a total of 140 employees.
Rio Energy will be a wholly owned subsidiary of Equinor, and its team will continue to develop the current portfolio of projects. It is estimated that the portfolio of projects acquired will bring a rate of return at the upper limit of the range indicated by Equinor: 4-8% real return for renewable energy projects, including the acquisition price.
Equinor plans for the energy produced by Rio Energy's portfolio of projects to be sold in the Brazilian market by Danske Commodities (DC), an energy trading company, also a wholly owned subsidiary of Equinor. DC recently established a commercial office in São Paulo to support Equinor's activities in the country.
“Brazil is the largest energy market in South America, with demand expected to grow in parallel with a rapid expansion of the free market. By establishing an electricity sales portfolio in Brazil managed by DC, we can seek to gain value, in line with our renewable energy strategy in selected markets”, concludes Olav Kolbeinstveit, senior vice president for renewable energy and onshore market at Equinor.
