April 20, 2024
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ELECTRICITY RENEWABLE ENERGY

Equinor Expands Renewable Portfolio with 531-Megawatt Solar Plant in Brazil

Equinor, the Norwegian energy major, has announced the operationalization of a 531-megawatt (MW) solar plant in Brazil, significantly boosting its power production in the South American country by 30%.

According to Reuters, the new Mendubim solar plant is projected to generate 1.2 terawatt-hours (TWh) of power annually.

Approximately 60% of this power will be sold under a 20-year US-dollar-denominated power purchase agreement (PPA) with Alunorte, a prominent supplier of alumina for the aluminum industry. The remaining power output will be sold in Brazil’s power market.

Developed and operated as a joint venture between Scatec, Hydro Rein, and Equinor, the solar power project underscores Equinor’s commitment to expanding its presence in Brazil’s renewable energy sector.

Olav Kolbeinstveit, Senior Vice President for Onshore and Markets within Renewables at Equinor, emphasized the company’s long-term growth strategy in Brazil, citing it as a core area for profitable expansion.

“Equinor has conducted business in Brazil for over two decades, and we see the country as a core area for long-term profitable growth.”

Equinor expects the Mendubim solar plant to deliver real base project returns within the middle of its guided range for renewables, which stands at 4-8%.

While Equinor’s renewables division is still catching up with its oil and gas profits, the company has made significant investments in solar and offshore wind power projects globally.

In addition to the Mendubim solar plant, Equinor has operations in solar energy across Brazil, Poland, and northern Europe. Last year, the company acquired Brazilian onshore renewables company Rio Energy, which included the Serra da Babilonia 1 onshore wind farm and a portfolio of onshore wind and solar projects.

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