New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
Equinor has made a final investment decision on the 531 MW Mendubim solar project in the state of Rio Grande do Norte, Brazil.
The project is being developed as a joint venture between Scatec, Hydro Rein and Equinor, each partner holding a 33.3% stake and jointly providing 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.
Mendubim is Equinor’s second large-scale solar project in Brazil, following the 162 MW Apodi solar plant that was commissioned in 2018 in partnership with Scatec.
Expected to produce around 1.2 TWh of power, equivalent to the electricity consumption of 620,000 Brazilian homes, Mendubim is estimated to have a total project capital expenditure (capex) of around $430mn.
Some 60% of the produced power will be sold on a 20-year US$-denominated power purchase agreement (PPA) with Alunorte, one of the world’s leading suppliers of aluminium oxide (alumina) for the aluminium industry. The remaining 40% will be sold in the Brazilian power market.
