Hydro Rein and GIG will develop a 586 MW wind and solar project in Brazil

Hydro Rein and Macquarie Asset Management’s Green Investment Group (GIG) have agreed to form a joint venture (JV) for building and operating the 586 MW Feijão combined wind and solar project in the northeast of Brazil. The hybrid wind and solar project will be located in the states of Piauí and Pernambuco. 80 wind turbines with a combined capacity of 456 MW will be constructed in phase one, with the option to develop up to 130 MW of solar power production in phase two. Final investment decision for the wind plant is expected in the fourth quarter of 2022, while an investment decision for the solar project will be taken at a later stage.  Total capital expenditure for the project is estimated at US$700m. Hydro Rein will own a share of 49.9% in the project, with the remaining 50.1% held by the Macquarie Green Investment Group Renewable Energy Fund 2. The plant will supply electricity to Hydro’s bauxite mine Paragominas. Alunorte and Paragominas have both signed long-term US dollar power purchase agreements (PPA) with Feijão under Brazilian self-production structure, enabling the project as sole off-takers.