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 586MW combined wind and solar power project in the northeast of Brazil.
The hybrid wind and solar project is located in the states of Piauí and Pernambuco. 80 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 farm 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 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. The project will supply electricity to Hydro’s bauxite mine Paragominas and will further reduce carbon emissions from Hydro’s alumina refinery Alunorte, by enabling coal replacement towards 2030. Alunorte and Paragominas have both signed long-term US dollar power purchase agreements (PPAs) with Feijão under Brazilian self-production structure, enabling the project as sole off-takers.
