Equinor progresses giant Brazilian solar plant to feed power into aluminium industry

International oil & gas major Equinor has taken a final investment decision on the 531MW Mendubim solar project in north-eastern Brazil, which it is developing together with fellow Norwegian partners Scatec and Hydro Rein.

The consortium has already lined up Alunorte, one of the world’s largest leading suppliers of alumina for the aluminium industry, as a buyer of about 60% of the PV project’s electricity through a 20-year power purchase agreement. The remainder will be sold in the Brazilian market.

“With the Mendubim project, we expand our investments in renewables in Brazil considerably, and take an important step towards building a material solar portfolio in the country,” said Olav Kolbeinstveit, senior vice president for power and markets within renewables at Equinor.

“From 2024 onwards, Mendubim will annually produce around 1.2TWh of power, which is equivalent to electricity consumption of 620,000 Brazilian households.”

Equinor, Scatec and Hydro Rein each own a third in the Mendubim project, which is being built in the state of Rio Grande do Norte and has an estimated capital expenditure of $430m.

The part-state owned energy giant stressed that the project is expected to deliver real project-based returns in Equinor’s guided range for renewables of 4-8%, and underpins its ambition to accelerate growth in renewables and develop as a market-driven power producer in selected markets.

“Equinor has conducted business in Brazil for over two decades, and we see the country as a core area for safe and sustainable long-term growth,” said the company’s Brazil country manager Veronica Coelho.

“We are working to build a diversified energy offering with a robust oil and gas portfolio and an attractive renewables position.

“Mendubim will be an important milestone for Equinor’s ambitions of being a leading company in the energy transition.”