Norwegian renewable technology company Scatec ASA is building the 531MW solar power plant in Rio Grande do Norte state in north-eastern Brazil together with partners Equinor and Hydro Energy’s renewables arm, Hydro Rein. The plant will give Hydro Energy’s Alunorte refinery access to renewable energy for alumina production by supplying 1.2TW of power, and provide electricity to more than 600,000 Brazilian homes. Eksfin  provides guarantees totalling up to USD 71m for the project’s realisation. Eksfin’s provision of risk reduction financing has been a key factor in Scatec’s international expansion since 2010.

Construction is underway at the 531 MW Mendubim power plant, with the three partners each taking a 33.33% ownership stake. Scatec will be responsible for plant operation and maintenance alongside its partners.

Power purchase agreement

Alunorte is located in the state of Pará and delivers alumina to Norsk Hydro plants both in Norway and globally. The refinery has signed up to buy around 60% of the offtake of the new plant, making it key to Norsk Hydro’s goal to reduce emissions related to aluminium production by 30% by 2030. The remaining volume from the plant will be sold in the Brazilian power market.

Risk reduction decisive for loan finance

Eksfin’s guarantees enable commercial banks to extend their support for Norwegian exporters. In this project, Eksfin is supporting Scatec with advance payment and performance guarantees, as well as equity guarantees, and payment guarantees which serve to secure that construction of the plant is executed as contracted.

The plant is Scatec’s second in Brazil, the first being the Apodi solar plant in the city of Quixeré, for which Eksfin also provided guarantee financing.

Strong support for expansion in growing sector
Eksfin’s provision of risk reduction financing has been a key factor in Scatec’s international expansion since 2010. In addition to Brazil, Eksfin has up to now provided more than 900 million USD in guarantees financing for Scatec solar plants in other emerging markets including South Africa, Egypt, Malaysia, Pakistan, Czech Republic, Honduras, and Ukraine.

“The world needs more renewable energy than ever before. Support from strong financial partners such as Eksfin is essential to assist us on our mission to scale up renewables in emerging markets. The Mendubim project is a key milestone for us in our focus market Brazil, and we expect the solar energy market in the country to further accelerate,” said Scatec CEO Mr. Terje Pilskog.

“Scatec is today one of the world’s leading renewable energy solutions providers and we have been co-operating closely for over a decade. I would like to congratulate Scatec, along with Hydro Energy and Equinor, on this latest important project in Brazil. It secures Norwegian exports, which is Eksfin’s primary mandate, with the added benefit of significant emissions reduction and renewable power generation for Brazilian industry and households,” said Eksfin CEO Ms. Tone Lunde Bakker.