Scatec, Equinor and Hydro plan 480-MW solar project in Brazil

A trio of Norwegian companies, namely Scatec Solar ASA (OSL:SSO), Equinor ASA (OSE:EQNR) and Norsk Hydro ASA (OTCMKTS:NHYKF), plans to jointly develop a 480-MW solar project in Brazil.

Oslo-based independent power producer Scatec Solar announced today that it has entered into a memorandum of understanding (MoU) with oil and gas major Equinor and aluminium producer Hydro with hopes to reach an investment decision on the project next year. The pact envisages executing the scheme on a site in the state of Rio Grande do Norte that has already been secured by Scatec and Equinor.

In addition to joint ownership, the MoU also contemplates offtake of a portion of the solar production by Hydro. The latter wants to reduce the carbon dioxide (CO2) footprint from its operations by 30% by 2030. It expects most of that reduction to come from Brazil, according to Olivier Girardot, who is the head of Renewable Growth in Hydro Energy.

“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,” said Terje Pilskog, EVP Project Development & Project Finance at Scatec.

Scatec and Equinor have an existing renewables development partnership in Brazil and already operate a 162-MW solar plant in the country.

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