Renewable energy solutions provider Scatec, and its partners, Equinor and Hydro Rein, are starting construction activities of the Mendubim solar project in the state of Rio Grande do Norte in Brazil.
The 531MW solar project is the second project for Scatec in Brazil.
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Under a 20-year power purchase agreement (PPA), the companies will supply 60% of the expected power produced from the solar plant to Alunorte, a supplier of alumina.
The remaining 40% power produced by the plant will be sold in the Brazilian power market.
The companies are now placing orders for essential components and beginning site preparation activities.
The capex for the project is estimated to be $430m, which will be financed by a combination of non-recourse project debt and equity from partners.
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By GlobalDataFinancial close as well as the first disbursement of finance debt are expected within the end of this year.
Scatec CEO Terje Pilskog said: “This investment is a key milestone in delivering on our strategy and will strengthen our position in a major renewable energy growth market with strong partners including Equinor and Hydro Rein.
“Brazil’s solar energy market is expected to further accelerate, and we are pleased to move ahead with this exciting project, that will help to power 620,000 households in Brazil.”
Hydro Rein head Olivier Girardot said: “Brazil is leading the way within solar energy in Latin America, and we are very pleased to take part in this development together with Equinor and Scatec.
“Mendubim enables further decarbonisation of Alunorte, which is key to reach Hydro’s target of a 30% CO2 reduction by 2030.”
Having an interest of 33.3% in the solar project, the three companies will jointly offer engineering, procurement and construction (EPC) services.
Scatec will offer operation and maintenance as well as asset management services to the power facilities along with the partners.
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Image: Sixty per cent of the power produced from the solar plant will be supplied to Alunorte. Credit: Michael Schwarzenberger from Pixabay.
