01 June 2022
Hydro Rein and Macquarie Asset Management’s Green Investment Group (GIG) have entered into agreements to form a joint venture to build and operate Feijão, a 586 MW combined wind and solar power project in the northeast of Brazil. GIG and Hydro Rein will also finalise the project’s development alongside Casa dos Ventos, an experienced Brazilian renewable energy company with a 43.5 GW portfolio of wind and solar projects.
The project will supply 100% of the electricity required for Hydro Rein’s bauxite mine Paragominas and will further reduce carbon emissions from Hydro Rein’s alumina refinery Alunorte, by enabling the switch away from coal boilers by 2030. Alunorte and Paragominas have both signed long-term US dollar power purchase agreements (PPAs) with Feijão under a Brazilian self-production structure. The project will be an important enabler to reach Hydro’s target of a 30% reduction of its own emissions by 2030.
The hybrid wind and solar project is located in the states of Piauí and Pernambuco, and will be built in one of the largest wind farm clusters in Latin America. The Project has entered into a Turbine Supply Agreement and associated long term Service and Availability Agreement with the Nordex Group for 80 N163/[5.7X]MW Wind Turbine Generators, and a Balance of Plant (BOP) agreement with Eleconor. The 80 turbines have a combined capacity of 456 MW and will be constructed in phase one, with the option to develop up to 130 MW of solar capacity in phase two.
Final investment decision for the wind farm is expected in the fourth quarter of 2022, while an investment decision for the solar project will be taken at a later stage.
Head of Hydro Rein
Total capital expenditure for the wind farm is estimated at USD $700 million (100% basis). Hydro Rein’s ownership share will be 49.9%, with the remaining 50.1% held by the Macquarie Green Investment Group Renewable Energy Fund 2. This is the fifth investment made through Macquarie Green Investment Group Renewable Energy Fund 2 and follows recent agreements to invest in two French solar developers, Reden Solar and Apex Energies Group.
GIG is a specialist green investor within Macquarie Asset Management, and a global leader in the development of companies, assets and technologies that aim to accelerate the global transition to net zero. GIG began operating as part of Macquarie Asset Management in April 2022. The combined teams significantly enhance Macquarie Asset Management’s offering in green investments, with the $US579 billion asset manager now overseeing investments in more than 46 GW of capacity.
Global Head of the Green Investment Group
Elecnor do Brasil, which has been working on the construction of electricity projects in Brazil for more than 40 years, will be responsible for building the civil and electromechanical BOP of the new wind plant. Their work will last 18 months, and support about 700 new jobs at its peak, whilst prioritising the hiring of local labour. Their work on the project involves the construction of all civil infrastructure, the medium voltage network, substations, transmission lines and the opening of access roads to towers, drainage, and foundations for the installation of 80 wind turbines.
About Hydro Rein
Hydro Rein was established in 2021 as part of Hydro’s strategy to grow in renewables. The company aims at becoming the preferred supplier of renewable power and other energy solutions for industrial clients.
Hydro Rein has a significant pipeline of wind and solar projects in Brazil and the Nordics for long-term power supply to Hydro and other industrial offtakers. Hydro Rein is also developing a range of energy solutions to assist industries with the management and optimization of its energy consumption and storage behind-the-meter.
About The Nordex Group
The Nordex Group has installed more than 39 GW of wind energy capacity in over 40 markets and in 2021 generated revenues of EUR 5.4 billion. The company currently employs a workforce of approx. 8,600. The joint manufacturing capacity includes factories in Germany, Spain, Brazil, the United States, India and Mexico. The product portfolio is focused on onshore turbines in the 4 to 6.X MW class, which are tailor-made for the market requirements of countries with limited space and regions with limited grid capacity.