Hydro Rein and Macquarie Asset Management’s Green Investment Group have formed a joint venture to build and operate the Feijão project, a 586 MW combined wind and solar power project in Northeast Brazil.
The project will provide electricity to Hydro Paragominas’ bauxite mine and further reduce carbon emissions from Hydro Alunorte, the company’s alumina refinery, by enabling the installation of new electric boilers.
Alunorte and Paragominas have signed long-term PPA (power purchase agreement) contracts in dollars with the Feijão wind and solar hybrid project under a self-generation structure, making the project viable as the main consumers. The project will be an important enabler for achieving Hydro's global goal of reducing CO30 by 2% by 2030.
The hybrid wind and solar project is located in the states of Piauí and Pernambuco and will be built in one of the largest clusters of wind farms in Latin America. In the first phase, 80 turbines with a combined capacity of 456 MW will be built, with the option to develop up to 130 MW of solar energy production in the second phase.
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The final investment decision for the wind farm is expected in the fourth quarter of 2022, while an investment decision for the solar project will be made at a later stage.
“We are delighted to be participating in the development of more renewable energy in Brazil together with Green Investment Group. This project is an important milestone in Alunorte’s decarbonization efforts and an important milestone for Hydro Rein to develop its portfolio of assets in Brazil,” said Olivier Girardot, Head of Hydro Rein.
Total capital expenditure for the wind farm is estimated at US$700 million. Hydro Rein's shareholding will be 49,9%, with the remaining 50,1% held by Macquarie Green Investment Group Renewable Energy Fund 2.
“Brazil has vast potential for wind development, and we are delighted to partner with Hydro on this advanced-stage project. Hydro’s expertise in the Brazilian energy market and regional presence, combined with our global expertise in wind energy and infrastructure, create a strong partnership that can advance Brazil’s supply chain and the region’s ambitions to engage with the global wind opportunity,” said Mark Dooley, Global Head of the Green Investment Group.
