Equinor has made the final investment decision on its 531MW Mendubim solar project in Brazil.
Mendubim is being developed as a joint venture between Scatec, Hydro Rein and Equinor, and is located in the state of Rio Grande do Norte.
All three partners have an equal stake of 33.3% in the project and will jointly provide engineering, procurement and construction (EPC) services.
Operation and maintenance as well as asset management services to the power plant will be provided by Scatec and Equinor.
Total project capital expenditure (capex) is estimated to be around Us$430m (€409m).
The asset will be funded by a combination of project financing and equity contribution from partners.
Mendubim is expected to deliver real project-based returns in Equinor’s guided range for renewables of 4-8%.
Around 60% of the produced power will be sold on a 20-year USD-denominated power purchase agreement (PPA) with Alunorte, one of the world’s leading suppliers of alumina for the aluminium industry.
The remaining 40% of the production will be sold in the power market in Brazil.