Scatec has signed a Memorandum of Understanding (MoU) with Equinor and Hydro with the purpose to jointly develop a 480 MW solar power plant.
“We are pleased to partner with Hydro and Equinor and believe this will be a fruitful collaboration. We all have mutual interests in cooperating and developing this solar project, combining Scatec and Equinor’s experience within large-scale renewable energy projects with Hydro’s strong competence from the energy markets and their demand for clean and cost efficient power in Brazil,” says Terje Pilskog, EVP Project Development & Project Finance at Scatec.
With focus on renewable energy and a well-developed regulatory framework, the solar market in Brazil has significant long-term potential. Scatec and Equinor are jointly developing a portfolio of projects in Brazil, and currently have a 162 MW solar plant in operation.
“We are pleased to collaborate with our partner Scatec and with Hydro on this project. 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,” says Olav Kolbeinstveit, Vice president for Power and markets in New energy solutions in Equinor.
“Hydro aims to lower the CO2 footprint from our operations by 30% by 2030, and most of the reduction will come from Brazil. To reach that target, sufficient access to renewable energy is fundamental. This project demonstrates our resolve to partner with industry leaders to develop a substantial and balanced portfolio of renewable projects that Hydro can source from in the near future,” says Olivier Girardot, head of Renewable Growth in Hydro Energy.
The MoU provides a framework to realise the project on a site already secured in Rio Grande do Norte in Brazil by Scatec and Equinor. The MoU contemplates joint ownership and development of the project by the three parties and offtake of part of the production by Hydro. Subject to final agreement, the companies aim to reach an investment decision in 2021.