Equinor announces FID on 531-MW solar project in Brazil

Norwegian energy group Equinor ASA (NYSE:EQNR) today said it has made the final investment decision on the 531-MW Mendubim solar project in Brazil that it is developing with compatriot companies Scatec ASA (OSL:SCATC) and Hydro Rein.

The USD-430-million (EUR 409m) project in the state of Rio Grande do Norte will be funded by a mix of project financing and equity contribution from the partners. Early-phase construction works commenced in the summer after the project secured a 20-year USD-denominated power purchase agreement (PPA) with alumina supplier Alunorte for around 60% of its generation. The remaining part of its output will be sold in the power market in Brazil.

Hydro Rein and Alunorte are both part of aluminium producer Norsk Hydro ASA (OSE:NHY).

All three partners on Mendubim have an equal stake of 33.3% in the project.

For Equinor, Mendubim is its second large-scale solar project in Brazil after the 162-MW Apodi solar park that was completed together with Scatec in 2018.

The group said the project supports its plans to accelerate growth in renewables and establish itself as a market-driven power producer in selected markets.

Equinor has been active in Brazil since 2001. “We are working to build a diversified energy offering with a robust oil and gas portfolio and an attractive renewables position,” said Veronica Coelho, Equinor’s country manager in Brazil.

(USD 1 = EUR 0.951)

Choose your newsletter by Renewables Now. Join for free!