Hydro Rein, Equinor and Scatec are starting construction activities for the Mendubim solar project in the state of Rio Grande do Norte in Brazil. The 531 megawatt (MW) solar is being realized in a partnership between renewable energy solutions providers Scatec, Equinor ASA and Hydro Rein. The companies have signed a 20-year USD denominated power purchase agreement (PPA) with Norsk Hydro’s alumina refinery Alunorte in the state of Para for approximately 60% of the expected power produced. The remaining volumes will be sold in the Brazilian power market. The partners are now placing orders for key components and starting site preparation activities.
The estimated total capital expenditure for the project is USD 430M to be financed by a mix of non-recourse project debt and equity from partners. Financial close and the first disbursement of project finance debt are expected within the end of 2022.
All three partners have an equal economic interest of 33.3% 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.