Developer Scatec Solar has signed an MOU (Memorandum of Understanding) with oil company Equinor and Norwegian aluminum producer Hydro to develop a solar power plant in Brazil. The plant, which has 480 MW of installed capacity, is expected to be built in the state of Rio Grande do Norte. Subject to a final agreement, the companies aim to reach an investment decision in 2021.
“We are pleased to partner with Hydro and Equinor and believe this will be a fruitful collaboration,” said Terje Pilskog, executive vice president for project development and financing at Scatec.
“We all have mutual interests in cooperating and developing this program, combining Scatec and Equinor’s experience in large-scale renewable energy projects with Hydro’s strong competence in energy markets and its demand for clean, cost-effective energy in Brazil” , he emphasized.
Olav Kolbeinstveit, Equinor’s Vice President Energy and Markets in New Solutions, also highlighted the partnership between the companies. “We have said that we will develop profitable onshore renewable assets in selected markets, and this MOU represents a good opportunity to further explore onshore opportunities in Brazil.”
Olivier Girardot, head of Renewable Growth in Hydropower at Hydro, commented that the company aims to reduce the CO2 footprint of operations by 30% by 2030, and the majority of the reduction will come from Brazil. “To achieve this goal, sufficient access to renewable energy is critical. This project demonstrates our determination to partner with industry leaders to develop a substantial and balanced portfolio of renewable projects that Hydro can pursue in the near future,” he concluded.
Market in Brazil
The plant to be implemented in Rio Grande do Norte is part of the second project in which Scatec and Equinor have collaborated in Brazil. In 2018, both companies completed a 162 MW plant in Ceará, through a 20-year PPA (Power Purchase Agreement) with the CCEE (Brazilian Energy Trading Chamber). The plant is expected to supply around 340 GW of electricity per year.
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