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Scatec, Hydro Rein and Equinor Collaborate to Energize Mendubim Solar Plant in Brazil

The Mendubim solar plant, boasting a capacity of 531 MW and comprised of multiple projects, stands as Scatec's second venture in Brazil.

March 13, 2024. By Abha Rustagi

Scatec ASA, in collaboration with its partners Hydro Rein (a division of Norsk Hydro ASA) and Equinor ASA, has announced the commencement of electricity supply and production from the Mendubim solar plant situated in the state of Rio Grande do Norte, Brazil.

The Mendubim solar plant, boasting a capacity of 531 MW and comprised of multiple projects, stands as Scatec's second venture in Brazil. The endeavor is a joint effort with Norwegian allies Equinor and Hydro Rein.

Securing a 20-year USD-denominated power purchase agreement (PPA) with Alunorte, a premier global provider of alumina for the aluminum industry and majority-owned by Hydro ASA, the agreement encompasses approximately 60 percent of the anticipated power output. The remainder will be marketed within the Brazilian power market.

Terje Pilskog, CEO of Scatec, highlights the significance of the Mendubim solar power plant, stating, "This milestone underscores our commitment to strategic objectives and fortifies our presence in a burgeoning renewable energy market, bolstered by esteemed partners Equinor and Hydro Rein."

Hydro Rein's CEO Olivier Girardot expresses enthusiasm for completing the inaugural renewable energy project in Brazil, emphasizing its alignment with the company's mission to develop sustainable energy solutions.

Olav Kolbeinstveit, Senior Vice President for Onshore and Markets within Renewables at Equinor, highlights the significance of launching a major solar plant in Brazil, underlining the country's importance for long-term profitable growth and supporting its aspirations towards a diverse energy mix.

With an equal economic interest of 30 percent each, all three partners - Scatec, Hydro Rein, and Equinor - share ownership of the project. Alunorte has exercised its call option, securing the remaining 10 percent economic interest, concurrent with the commencement of commercial operations.

Tags:

Brazilian power market

Solar energy

Renewable energy