Equinor Expands Renewable Footprint with Launch of 531 MW Mendubim Solar Plant in Brazil

The Mendubim solar plant, boasting a capacity of 531 MW, has commenced operations in Brazil, marking a significant 30% increase in Equinor’s equity power production within the country.

Veronica Coelho, Equinor’s country manager in Brazil, emphasizes the importance of Mendubim in Equinor’s diversified energy portfolio, which includes oil and gas assets alongside renewable energy ventures.

Expected to generate 1.2 TWh of power annually, around 60% of Mendubim’s output will be sold under a 20-year USD-denominated power purchase agreement (PPA) with Alunorte, a leading alumina supplier. The remaining production will be sold in Brazil’s power market.

Mendubim is a joint venture between Scatec, Hydro Rein, and Equinor, with each partner holding an equal economic interest of 30%. Alunorte has also exercised its call option to acquire the remaining 10%.

Olav Kolbeinstveit, Equinor’s senior vice president for Renewables, hails the project as a significant milestone in the company’s renewable energy endeavors in Brazil, supporting the nation’s ambitions for a diverse energy mix.

Terje Pilskog, CEO of Scatec, emphasizes the project’s alignment with their strategic objectives and commitment to sustainable progress, with an estimated avoidance of approximately 3 million tonnes of carbon dioxide equivalents.

Olivier Girardot, CEO of Hydro Rein, underscores the importance of Mendubim in advancing renewable energy solutions and supporting Alunorte’s decarbonization efforts.

With Mendubim in operation, Equinor strengthens its position in Brazil’s power market, increasing its equity power production by around 30% and entering the de-regulated power market for the first time.

Equinor’s renewables portfolio in Brazil includes the Apodi solar plant (162 MW), the Serra da Babilônia 1 onshore wind farm (223 MW), and a pipeline of solar and wind projects being developed by its subsidiary, Rio Energy.

Equinor aims to build a substantial and profitable power portfolio in Brazil, with its energy trading arm, Danske Commodities, managing the portfolio in the Brazilian market to maximize value creation.