THE equinor announced the final investment decision in the Mendubim solar energy project, of 531 megawatts (MW), together with partners, with total investments of 430 million dollars, in what will be the company’s second large-scale project of its kind in the Brazil🇧🇷
Located in large northern riverthe Mendubim project is a joint venture between Scatec, Hydro Rein and Equinor.
The three partners have equal economic stakes of 33.3% in the project and will jointly carry out Engineering, Procurement and Construction (EPC) services, explained the company.
Operation and maintenance services, in addition to asset management, will be jointly provided by Equinor and Scatec.
“The project underpins the company’s ambition to accelerate growth in renewables and develop as an energy producer with a focus on selected areas,” Equinor said in a note.
Equinor highlighted that it started activities in renewables in Brazil with the 162 MW Apodi solar plant, in operation since 2018, in partnership with Scatec.
“With the Mendubim project, we have considerably expanded our investments in renewables in Brazil and are taking an important step towards continuing to build a significant solar energy portfolio in the country,” said Olav Kolbeinstveit, Senior Vice President of Energy and Renewables Markets at Equinor. .
The $430 million investment will rely on a combination of long-term funding and equity contributions from partners.
According to Equinor, Mendubim will deliver real returns, at the project level, within Equinor’s estimated range for renewable projects globally, of 4-8%.
Around 60% of the energy produced will be sold through a 20-year energy purchase and sale agreement, in dollars, with Alunorte, the world’s leading supplier of alumina for the aluminum industry.
The remaining 40% of production will be sold on the Brazilian energy market.
Energy trading services are to be performed by Hydro Energia and Danske Commodities, Equinor’s energy trading company. Danske Commodities has recently established an office in São Paulo to support Equinor’s activities in the country.
Source: Moneytimes
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