Hydro Rein, GIG set up JV for 586-MW wind, solar hybrid in Brazil

Norwegian aluminium producer Norsk Hydro ASA (OSE:NHY) said on Wednesday that it has agreed to form a joint venture (JV) with Macquarie’s Green Investment Group (GIG) to build and operate a 586-MW wind and solar hybrid power project in north-east Brazil.

Hydro is represented in the JV by its renewable energy business Hydro Rein.

The Feijao hybrid project will be located in the Brazilian states of Piaui and Pernambuco. The JV partners plan to first raise a 456-MW wind farm as part of phase one, with the option to develop up to 130 MW of solar power in phase two, Hydro said.

Feijao is backed by long-term US dollar power purchase agreements (PPAs) with Hydro’s bauxite mine Paragominas and its alumina refinery Alunorte as the project’s sole off-takers.

Total CAPEX for the wind portion of the Feijao development is estimated at USD 700 million (EUR 652.9m). Hydro Rein will own a 49.9% stake in the project, with the Macquarie Green Investment Group Renewable Energy Fund 2 holding the remaining 50.1%, Hydro said.

The companies expect to take the final investment decision (FID) for the wind farm in the fourth quarter of 2022. FID for the solar part of the project will be taken at a later stage.

“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,” commented Olivier Girardot, Head of Hydro Rein.

(USD 1.0 = EUR 1.072)

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