Macquarie Asset Management's Green Investment Group (GIG) has joined hands with Norwegian renewables developer Hydro Rein to co-develop a 586 MW wind and solar power project in Brazil that will have Norsk Hydro's bauxite mine and alumina refinery as sole offtakers of power generated.
Both Paragominas bauxite mine and Alunorte alumina refinery have entered long-term power purchase agreements (PPA) under Brazilian self-production structures. This will help the mining entities reduce their carbon emissions and replace coal by 2030.
The Feijão renewable enegy project will be located in the states of Piauí and Pernambuco and will be built via a joint venture (JV). Under phase I, 456 MW wind energy capacity will be constructed with the option to develop up to 130 MW of solar power production under phase II.
Both the partners expect to reach final investment decision for the wind farm in Q4/2022 while for the solar project, the same will be taken at a later stage.
"This project is an important milestone in the efforts to decarbonize Alunorte and an important milestone for Hydro Rein developing its portfolio of Brazilian assets," said Head of Hydro Rein, Olivier Girardot.
For Hydro Rein this JV partnership follows the news of the company joining hands with Atlas Renewable Energy and Albras to propose a 438 MW solar power plant with an aim to supply 815 GWh of electricity annually to Albras' primary aluminum plant (see Latin America PV News Snippets).