- Press Releases
July 8 (Renewables Now) - Norwegian firms Scatec ASA (OSL:SCATC), Equinor ASA (NYSE:EQNR) and Hydro Rein, part of aluminium producer Norsk Hydro ASA (OSE:NHY), will launch construction of the 531-MW Mendubim solar project in Brazil after securing a long-term power off-take deal.
The partners said on Friday they have sealed a USD-denominated power purchase agreement (PPA) with alumina refinery Alumina do Norte do Brasil SA (Alunorte), which is part of the Norsk Hydro group. The contract covers electricity from around 60% of the solar farm’s future output and will be valid for 20 years. The remaining power will be sold in the Brazilian power markets.
To be located in the state of Rio Grande do Norte, the Mendubim photovoltaic (PV) farm will be installed at a total cost of some USD 430 million, to be financed by a mix of non-recourse project debt and equity. Financial close is expected to be reached by the end of this year.
Scatec, Equinor and Hydro Rein will jointly handle the project’s engineering, procurement and construction. Each of them owns a 33.3% interest in the scheme.
According to the statement, orders are currently being placed for key components and site preparation activities are in process. Once in operation, the solar complex is expected to generate enough electricity equal to the consumption of 620,000 homes in Brazil.