Norwegian renewables developer Hydro Rein and Macquarie’s Green Investment Group (GIG) are to collaborate on a hybrid solar-wind project in Brazil.
Development of the hybrid project is to start with a first phase of 456MW of wind power, with an option to add 130MW of solar PV during a second phase.
The hybrid project is planned for the states of Piauí and Pernambuco, in the northeast of Brazil.
Long-term power purchase agreements have been signed with Hydro’s bauxite mine Paragominas and its alumina refinery Alunorte which would reduce Hydro’s use of coal and its planned phase out by 2030.
Final investment decision for the wind farm is expected by Q4 2022, with the solar PV project at a later stage. It’s anticipated the completed project would cost around US$700 million to complete.
Once completed, Hydro Rein would retain 49.9% of the project, while the remaining 50.1% would be held by GIG’s Renewable Energy Fund 2.
“We are very pleased to play a part in developing more renewable energy in Brazil together with Green Investment Group. This project is an important milestone in the efforts to decarbonize Alunorte and an important milestone for Hydro Rein developing its portfolio of Brazilian assets,” said Olivier Girardot, head of Hydro Rein.