GIG and Hydro Rein finalize investment for 456MW wind project in Brazil

Green Investment Group (GIG) and Hydro Rein are all set to develop the 456MW Feijao onshore wind project in Brazil.

GIG is under Macquarie Asset Management while Hydro Rein is a subsidiary of Norsk Hydro. GIG will own 50.1% stake in the project while Hydro Rein will have 49.9%.

The project is located in the Piaui and Pernambuco states of north-east Brazil.

According to GIG, “the companies raised a total of $290 million of debt from seven commercial banks for the $700 million wind project.” Those seven commercial banks consist of Citibank, JPMorgan, HSBC, BNP, SocGen, Natixis and Santander.

The project has been developed alongside Brazilian renewable energy developer Casa dos Ventos.

According to the companies, around 75% of the power will go to Norsk Hydro’s Paragominas bauxite mine and its Alunorte alumina refinery once the project comes into operation. The remaining power is scheduled to be sold on the open market.

The project is currently under construction, while the delivery of wind turbines and installation is scheduled within a couple of months. The project is likely to begin operations in 2024.

“The financing showcases the increasing maturity of the local renewables market and offers a model to support the further development of projects in the region,” GIG managing director Eric Bjonerud was quoted in a statement.

He was further quoted, “It's a great chapter in the story of the GIG and Norsk Hydro relationship, which took successful products from Norway and brought them to a different country to try and help decarbonise one of the world's biggest consumers of energy.”

Besides the wind farm, the two companies also own the rights to develop up to 130MW solar farm.