30% Brighter Future: Equinor Flips The Switch On Huge Brazil Solar Project
Equinor ASA EQNR stated that its 531 MW Mendubim solar plant in Brazil has commenced operation.
The solar plant will increase the company’s equity power production by 30%, bringing it to over 1,4 TWh in 2024 in Brazil. Mendubim will annually produce 1.2 terawatt hours (TWh) of power.
The company stated that about 60% of the power will be sold on a 20-year USD-denominated power purchase agreement (PPA) with Norsk Hydro ASA’s NHYKF Alunorte. The remaining production will be sold in the power market in Brazil.
The asset is expected to deliver real base project returns in the middle of Equinor’s guided range for renewables of 4%-8%.
“Mendubim represents an important contribution to Equinor’s diversified energy offering in Brazil that includes a robust oil and gas portfolio and an attractive renewables position,” said Veronica Coelho, country manager in Brazil.
Notably, the project is being developed and operated as a joint venture between Scatec, Hydro Rein, and Equinor, with all partners having an equal economic interest of 30%.
Last month, Equinor reported a 20% Y/Y drop in fourth-quarter FY23 adjusted revenue due to declining gas prices, impacting earnings significantly.
Despite strong equity liquids production, adjusted earnings plummet 49% Y/Y to $8.68 billion, reflecting market challenges for Equinor.
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Price Action: EQNR shares are trading higher by 0.72% at $26.05 on the last check Friday.
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