(BRIEF) Equinor is celebrating the start of operations at the Sun Force plant in Mendubim in Brazil, adding 531 MW of Sun Force to its energy portfolio and marking a 30% increase in its fair energy generation in the country. developed as a joint venture between Scatec, Hydro Rein and Equinor, it will contribute to Brazil’s renewable energy goals, with a significant portion of its production secured through a long-term power acquisition agreement with Alunorte, a leading supplier of alumina to the aluminum sector. industry. This milestone underscores Equinor’s commitment to sustainable expansion and its strategy to expand its presence in Brazil’s burgeoning renewable energy market.
(PRESS RELEASE) STAVANGER, March 9, 2024 — /EuropaWire/ — The 531 MW Mendubim solar power plant in Brazil has become operational. This represents a 30% increase in Equinor’s power generation in Brazil.
“Mendubim represents a contribution to Equinor’s diversified energy supply in Brazil, which includes a strong oil and fuel portfolio and a significant position in renewable energy,” says Veronica Coelho, Equinor’s country manager in Brazil.
Mendubim will annually produce 1.2 TWh of power.
Approximately 60% of the electricity will be sold through a 20-year, U. S. dollar-denominated forced procurement agreement (PPA) with Alunorte, one of the world’s leading suppliers of alumina to the aluminum industry.
The rest of the production will go to Brazil’s electricity market.
The asset is expected to generate real core returns for the allocation in the middle of Equinor-led renewable energy of 4% to 8%.
Important Mendubim Association
The assignment is being developed and operated as a joint venture between Scatec, Hydro Rein and Equinor. The 3 partners have an economic participation equivalent to 30% in the allocation. At the same time as the start of advertising operations, Alunorte exercised its purchase option and now owns the remaining 10%.
Olav Kolbeinstveit, Senior Vice President of Onshore and Renewable Energy Markets at Equinor, said:
“The launch of a new primary solar power plant in Brazil in partnership with Scatec and Hydro Rein is a significant achievement. Equinor has been operating in Brazil for more than two decades and we see the country as a core domain for successful long-term expansion. . By investing in renewable energy, we support Brazil’s ambitions for a diversified energy mix and help meet the expected expansion of electricity demand in the country.
Terje Pilskog, Chief Executive Officer of Scatec, said: “This allocation marks a step in achieving our strategic objectives and strengthens our position in a vital and developing renewable energy market, supported through our partners Equinor and Hydro Rein. Brazil’s burgeoning solar market aligns with our commitment to sustainable progress, and we are excited to advance this high-impact task with approximately 3 million tonnes of carbon dioxide equivalent avoided. “
Olivier Girardot, CEO of Hydro Rein, says: “We are very pleased to complete the first of Hydro Rein’s renewable energy projects in Brazil. Our project is to scale up renewable energy responses for more sustainable industries, and that is precisely what Mendubim’s power generation will move to Hydro’s alumina refinery, Alunorte, in Pará, supporting one of the largest decarbonization projects in the world. We are very proud to be part of this progression together with Equinor and Scatec .
Building a portfolio in Brazil
Brazil is the largest electric power market in South America, with growth in expected demand. Deregulation of the electricity market is underway and the deregulated market now accounts for around 40% of total consumption.
With Mendubim in operation, Equinor increases its equity power production in Brazil by around 30%, bringing it to over 1,4 TWh during 2024. Through Mendubim, Equinor also for the first time enters the de-regulated power market in Brazil.
Equinor’s total renewables power generation in 2023 was ~ 2 TWh with an outlook to double it in 2024.
“We are working to build a giant and successful energy portfolio in Brazil. Our energy trading company, Danske Commodities, will manage this portfolio in the Brazilian market, leveraging its portfolio trading and threat control functions to maximize price creation,” says Kolbeinstveit.
Equinor’s renewables position in Brazil includes three assets in commercial production: the 162 MW Apodi solar plant (44%), the 531 MW Mendubim solar plant (30%) and the 223 MW Serra da Babilônia 1 onshore wind farm (100%). There is also an over 1,5 GW pipeline of solar and onshore wind projects being matured by Equinor’s fully owned subsidiary Rio Energy.
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SOURCE: Equinor AAS
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