Power purchase agreement signed for 531 MW Solar project in Brazil

Hydro Rein, Equinor and Scatec have signed a 20-year long-term power purchase agreement (PPA) with Norsk Hydro’s alumina refinery Alunorte to supply approximately 60% of the expected power produced from the 531 MW Mendubim solar photovoltaic project in the state of Rio Grande do Norte in Brazil. The remaining volumes will be sold in the Brazilian power market.

All three partners have an equal economic interest of 33.3 percent in the project and will jointly provide Engineering, Procurement and Construction (EPC) services. Scatec will provide operation and maintenance as well as asset management services to the power plants together with the partners.

The Mendubim solar project has the capacity to produce enough energy to power 620,000 households annually. The estimated total capital expenditure for the project is USD430 million to be funded by a combination of non-recourse project debt and equity from partners. Financial close and the first disbursement of project finance debt are anticipated by the end of 2022.