Three companies have jointly started construction of the 531MW Mendubim solar farm in Brazil.
Scatec, Equinor and Hydro Rein are the companies working in this solar farm. The project is located in the state of Rio Grande do Norte.
The companies have an equal economic interest of 33.3% in the project. They will jointly look after engineering, procurement and construction services.
According to the companies, "they have signed a 20-year US dollar-denominated power purchase agreement with Alunorte for approximately 60% of the expected power produced."
To be noted, Alunorte is a supplier of alumina for the aluminium industry.
It has been informed that the remaining generated power will be sold in the Brazilian power market.
"The estimated total capital expenditure for the project is $430m to be financed by a mix of non-recourse project debt and equity from partners," a report mentioned. The project will see a financial closure by the end of 2022.
Scatec chief executive Terje Pilskog was quoted, “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.”
Meanwhile, Hydro Rein head Olivier Girardot commented, “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."