Equinor pushes building and construction button on 531MW Brazil project

Dec 8, 2022 12:26 PM ET
  • Mendubim solar site in Rio Grande do Norte is being developed with Scatec as well as Hydro Rein
Equinor pushes building and construction button on 531MW Brazil project
Image: Equinor/Einar Aslaksen

Equinor has made the final financial investment choice on its 531MW Mendubim solar project in Brazil.

Mendubim is being created as a joint venture in between Scatec, Hydro Rein and Equinor, and is located in the state of Rio Grande do Norte.

All 3 partners have an equal stake of 33.3% in the project and will jointly give engineering, procurement and also building (EPC) solutions.

Procedure as well as upkeep in addition to asset management services to the power plant will be offered by Scatec and Equinor.

Mendubim is Equinor's second big scale solar project in Brazil, following the 162MW Apodi solar plant (pictured) that was put in procedure in 2018 in collaboration with Scatec.

Elderly vice head of state for power and markets within renewables at Equinor Olav Kolbeinstveit claimed: "With the Mendubim project, we increase our investments in renewables in Brazil substantially, and take an important step towards building a material solar portfolio in the country.

" From 2024 onwards, Mendubim will every year generate around 1.2 TWh of power, which is equivalent to power intake of 620,000 Brazilian households.

" Construction phase will certainly develop more than one thousand straight and indirect jobs."

Complete project capital expenditure (capex) is approximated to be around United States$430m (EUR409m).

The asset will be moneyed by a combination of project funding as well as equity payment from partners.

Mendubim is anticipated to supply actual project-based returns in Equinor's led array for renewables of 4-8%.

Around 60% of the created power will certainly be sold on a 20-year USD-denominated power acquisition contract (PPA) with Alunorte, among the globe's leading providers of alumina for the aluminium market.

The staying 40% of the manufacturing will certainly be marketed in the power market in Brazil.

The power trading services are anticipated to be offered by Hydro Energia and Equinor's entirely possessed energy trading house Danske Commodities.

Danske Commodities have lately established a trading office in São Paulo to sustain Equinor's activity in the country.

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