Hydro REIN, Hydro’s venture in the renewables industry, to form a joint venture in Brazil for the development of a combined wind and solar power project

Hydro REIN, Hydro’s venture in the renewables industry, to form a joint venture in Brazil for the development of a combined wind and solar power project

(PRESS RELEASE) OSLO, 1-Jun-2022 — /EuropaWire/ — Hydro (OTCMKTS: NHYDY), a Norwegian aluminium and renewable energy company committed to a sustainable future, has announced that its subsidiary with focus on renewables Hydro REIN will form a new joint venture in Brazil with Macquarie Asset Management’s Green Investment Group (GIG) for the development and operation of Feijão, a 586 MW combined wind and solar power project in the northeast of the country.

The project will supply 100% of the electricity required for Hydro’s bauxite mine Paragominas and will further reduce carbon emissions from Hydro’s alumina refinery Alunorte, by enabling coal replacement towards 2030. Alunorte and Paragominas have both signed long-term US dollar power purchase agreements (PPAs) with Feijão under Brazilian self-production structure, enabling the project as sole off-takers. The project will be an important enabler to reach Hydro’s target of a 30% CO2 reduction by 2030.

The hybrid wind and solar project is located in the states of Piauí and Pernambuco, and will be built in one of the largest wind farm clusters in Latin America. 80 turbines with a combined capacity of 456 MW will be constructed in phase one, with the option to develop up to 130 MW of solar power production in phase two.

Final investment decision for the wind farm is expected in the fourth quarter of 2022, while an investment decision for the solar 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,” says Olivier Girardot, Head of Hydro Rein.

Total capital expenditure for the wind farm is estimated at USD  700 million (100% basis). Hydro Rein’s ownership share will be 49.9%, with the remaining 50.1% held by the Macquarie Green Investment Group Renewable Energy Fund 2.

“Brazil has vast potential for wind development, and we are delighted to be partnering with Hydro on this late-stage project. Hydro’s Brazilian energy market expertise and regional presence, combined with our global wind and infrastructure experience, make for a strong partnership that can provide a boost to Brazil’s supply chain and the region’s ambitions to engage with the global wind opportunity,” says Mark Dooley, Global Head of Green Investment Group.

About Hydro REIN