Norwegian energy firms Equinor and Scatec are to collaborate on a 480MW solar project in Brazil.
The duo have signed a Memorandum of Understanding (MoU) with compatriot energy and aluminium provider Hydro to develop the project, with Hydro set to become an offtaker for some of the solar farm’s production.
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The MoU will see Scatec and Equinor add to a growing portfolio of onshore renewables projects owned by the companies in Brazil, including a 162MW solar project completed in 2018.
A site has already been secured in Rio Grande do Norte, and the parties expect to reach a final investment decision on the project next year, subject to final agreements being reached.
All three parties are expected to become joint owners of the project should it come to fruition.
The MoU is the latest in an extended history between Equinor and Scatec, the former owning a 15.2% stake in the latter after increasing its holding late last year.
Terje Pilskog, EVP for project development and project finance at Scatec, acknowledged the “mutual interests” of the two firms in cooperating on the project, stating the combined experience of Scatec and Equinor would help deliver clean and cost-efficient power in Brazil for Hydro.
“We have said we will develop profitable onshore renewable assets in select markets, and this MoU represents a good opportunity to further explore onshore opportunities in Brazil,” Olav Kolbeinstveit, vice president for power and markets in new energy solutions at Equinor, added.
The MoU comes a few months after Scatec agreed a US$1.1 billion deal to acquire hydropower developer SN Power, dropping the ‘Solar’ from its name in the process.
