Norwegian energy firms Equinor and Scatec are to collaborate on a 480MW solar project in Brazil. The duo have signed a Memorandum of Understanding (MoU) with compatriot energy and aluminium provider Hydro to develop the project, with Hydro set to become an offtaker for some of the solar farm’s production.
The MoU will see Scatec and Equinor add to a growing portfolio of onshore renewables projects owned by the companies in Brazil, including a 162MW solar project completed in 2018.
A site has already been secured in Rio Grande do Norte, and the parties expect to reach a final investment decision on the project next year, subject to final agreements being reached.
The MoU is the latest in an extended history between Equinor and Scatec, the former owning a 15.2% stake in the latter after increasing its holding late last year.
The MoU comes a few months after Scatec agreed a US$1.1 billion deal to acquire hydropower developer SN Power, dropping the ‘Solar’ from its name in the process.