Hydro Rein, Equinor and Scatec announced that they are starting construction activities on the 531 MW Mendubim solar project, located in the state of Rio Grande do Norte, one of the largest energy producers in the world.
The companies signed a 20-year PPA (power purchase and sale agreement) in US dollars with the Alunorte alumina refinery, which belongs to Norsk Hydro, in the state of Pará, for approximately 60% of the energy produced.
According to the companies, the remaining volumes will be sold on the Brazilian energy market. Partners are now placing orders for key components and beginning site preparation activities.
The estimated total capital expenditure is US$450 million, to be financed by a combination of non-recourse project debt and partner equity.
“Brazil is leading the way in solar energy in Latin America and we are delighted to participate in this development together with Equinor and Scatec,” said Olivier Girardot, head of Hydro Rein.
“Mendubim allows for greater decarbonization of Alunorte, which is fundamental to achieving Hydro’s goal of 30% CO2 reduction by 2030”, he highlighted.
Terje Pilskog, CEO of Scatec, highlighted that this investment is an important milestone in fulfilling the strategy and will strengthen the company's position in an important renewable energy growth market.
“The solar sector in Brazil is expected to accelerate further and we are pleased to move forward with this exciting project that will help power 620.000 homes in the country,” he added.
The three partners have an equal economic stake of 33,3% in the project and will jointly provide EPC (Engineering, Procurement and Construction) services. Scatec will provide O&M (Operation and Maintenance) services, as well as asset management for the plants.
More Hydro Rein projects
This is the third project announced by Hydro Rein in Brazil in 2022. In addition to Mendubim, the company also has two other plants in its portfolio.
In May, an agreement was announced with Atlas Renewable Energy to develop a solar energy self-production system in Paracatú (MG). The Boa Sorte solar plant will have a total capacity of 438 MW.
In the same month, the 586 MW Feijão hybrid wind and solar project was announced, which will be located in the states of Piauí and Pernambuco. It is a joint venture with Macquarie Asset Management's Green Investment Group.
