Oslo/Rio Grande do Norte, 8 July 2022: Scatec ASA, a leading renewable energy solutions provider, is starting construction activities together with partners for the Mendubim solar project in the state of Rio Grande do Norte in Brazil, one of the largest energy producing countries in the world.

The 531 megawatt (MW) solar project is Scatec’s second project in Brazil and is being realised in partnership with Equinor ASA and Hydro Rein. The companies have signed a 20-year USD-denominated power purchase agreement (PPA) with Alunorte, one of the world’s leading suppliers of alumina for the aluminium industry, for approximately 60 per cent of the expected power produced. The remaining volume will be sold in the Brazilian power market. The partners are now placing orders for key components and starting site preparation activities.

The estimated total capital expenditure (capex) for the project is USD 430 million to be financed by a mix of non-recourse project debt and equity from partners. Financial close and the first disbursement of project finance debt are expected within the end of 2022.

“This investment is a key milestone in delivering on our strategy and will strengthen our position in a major renewable energy growth market with strong partners including Equinor and Hydro Rein. Brazil’s solar energy market is expected to further accelerate, and we are pleased to move ahead with this exciting project, that will help to power 620,000 households in Brazil,” says Scatec CEO Terje Pilskog.

“Brazil is leading the way within solar energy in Latin America, and we are very pleased to take part in this development together with Equinor and Scatec. Mendubim enables further decarbonisation of Alunorte, which is key to reach Hydro’s target of a 30% CO2 reduction by 2030,” says Olivier Girardot, Head of Hydro Rein.

All three partners have an equal economic interest of 33.3% in the project and will jointly provide Engineering, Procurement and Construction (EPC) services. Scatec will provide Operation & Maintenance as well as Asset Management services to the power plants together with the partners.

For further information, please contact:
For analysts and investors: Andreas Austrell, VP Investor Relations, ir@scatec.com
For media: Stain Karlsen, Communications Manager, stian.karlsen@scatec.com

About Scatec ASA
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in high growth markets. As a long-term player, we develop, build, own and operate renewable energy plants, with 3.5 GW of installed capacity across four continents today. We are targeting 15 GW of renewable capacity to be in operation or under construction by the end of 2025, delivered by our 600 passionate employees who are driven by a common vision of 'Improving our Future'.  Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.

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.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act