New Solar Power plant constructing in north-eastern Brazil.

Norwegian company Scatec ASA, along with Equinor and Hydro Energy's renewables arm, Hydro Rein, are constructing a 531MW solar power plant in Rio Grande do Norte state in north-eastern Brazil. The plant will provide Hydro Energy’s Alunorte refinery access to renewable energy for alumina production by supplying 1.2TW of power and also provide electricity to over 600,000 Brazilian households. Eksfin (Export Finance Norway) is providing guarantees of up to USD 71m to ensure the project's realization. The three partners will each hold a 33.33% ownership stake in the Mendubim power plant, with Scatec responsible for plant operation and maintenance. Alunorte refinery has signed up to buy around 60% of the offtake from the new plant, playing a crucial role in Norsk Hydro's plan to reduce emissions related to aluminium production by 30% by 2030. The remaining power will be sold in the Brazilian power market.

Eksfin's provision of risk reduction financing has been instrumental in Scatec's international expansion since 2010. Eksfin is supporting Scatec with advance payment and performance guarantees, equity guarantees, and payment guarantees that secure the plant's construction is executed as contracted. This is Scatec's second plant in Brazil, following the Apodi solar plant in the city of Quixeré, for which Eksfin also provided guarantee financing. Eksfin has provided over USD 900m in guarantee financing for Scatec solar plants in other emerging markets, including South Africa, Egypt, Malaysia, Pakistan, Czech Republic, Honduras, and Ukraine.

Scatec's CEO, Mr. Terje Pilskog, emphasized the importance of support from strong financial partners like Eksfin to assist the company in scaling up renewables in emerging markets. He further added that the Mendubim project is a key milestone for them in their focus market Brazil, and they expect the solar energy market in the country to accelerate further. Eksfin's CEO, Ms. Tone Lunde Bakker, congratulated Scatec, Hydro Energy, and Equinor on this important project in Brazil, securing Norwegian exports with the added benefit of significant emissions reduction and renewable power generation for Brazilian industry and households.