Hydro Rein and Macquarie Asset Management signed a j for the construction of a wind and solar power plant in the Northeast of the country, with an initial investment of US$ 700 million
Hydro Rein, a Norsk Hydro group company for renewable energy, and the green investment fund Green Investment Group (GIG), from Macquarie Asset Management, formed a new j for the development of a hybrid project that involves the construction and operation of a wind and solar plant, with 586 megawatts of power in the Northeast of the country, to generate electricity in the bauxite mine of Hydro Paragominas. The complex was named Feijão, will be installed in the states of Pernambuco and Piauí and was structured according to the self-production model.
Wind and solar plant project in the Northeast of the country will receive US$ 700 million in investments
The energy was negotiated through a long-term energy purchase agreement (PPA) with Hydro Paragominas and Alunorte, both from the Hydro group, which is investing in its global goal of reducing CO30 emissions by 2% by the year 2030.
In addition to providing clean energy to the bauxite mine, the Nordeste wind and solar plant will also allow the Alunorte alumina refinery to install new electric boilers. The project's two anchor customers are in Pará.
The total investments by Hydro Rein and Macquarie in the new solar and wind farm in Northeast are estimated at US$ 700 million. However, the final investment decision for the development will only be announced in the fourth quarter of this year, while an investment decision for the solar project will be taken at a later stage. Hydro Rein's shareholding in the new j, will be 49,9%, while Macquarie's CIG will account for the other 50,1%.
Wind power plant will have capacity of 456 MW and solar plant of up to 130 MW
The park, which will be located in the Northeastern states, specifically in Piauí and Pernambuco, should further reduce Hydro Rein's carbon emissions and will, in its first phase, have around 80 turbines with a combined capacity of 456 MW. Regarding the solar plant, it is estimated that around 130 MW of production will be generated in the second phase.
According to Olivier Girardot, director of Hydro Rein, in a note, this project with Macquarie is an important milestone in Alunorte's decarbonization efforts and also an essential milestone for Hydro Rein to move forward with its portfolio of assets in the country.
It is also important to point out that the Hydro group has remained active in the development of new renewable energy in Brazil.
Meet Hydro Rein and Macquarie
Since 2015, Hydro has contributed to the development and commercial risk reduction of 2,5 GW of wind energy projects greenfield in Sweden and Norway from a long-term offtake position. The company also develops battery use cases at its power plants to establish storage capacity and avoid spikes in electricity prices and tariffs.
Macquarie Asset Management (MAM) provides investment solutions to clients across a range of resources in Public Investments and Private Markets, including infrastructure, agriculture, green investments, natural assets, real estate, private credit, asset finance, fixed income and many others. The company has around 2,4 employees operating in 24 markets in Australia, Europe, the Americas and Asia. The firm has managed assets for institutional and retail investors since the 80s in the US and Australia.
