Norsk Hydro ASA

04/03/2024 | Press release | Distributed by Public on 04/03/2024 05:06

Hydro Rein and Atlas Renewable Energy begin commercial operation of Boa Sorte solar plant

The solar plant consists of several projects and has been developed in a partnership between renewable energy solutions providers Hydro Rein and Atlas Renewable Energy, and Albras, a joint venture owned by Hydro and Nippon Amazon Aluminium Co. Ltd. (NAAC). With an installed capacity of 438 MW, Boa Sorte will generate about 920 GWh annually, equivalent to supplying over 394,000 Brazilian households.

"We are proud to reach this impressive achievement for a solar project contributing greatly to Hydro's decarbonization journey in Brazil. Hydro Rein's mission is to develop renewable energy solutions for more sustainable industries. This is what we're doing with Boa Sorte," says Head of Hydro Rein in Brazil, Marcela Jacob.

Boa Sorte is the second large-scale solar plant developed by Hydro Rein in Brazil. In the beginning of March 2024, Hydro Rein, together with partners Scatec and Equinor, started operations at the Mendubim solar plant in the state of Rio Grande do Norte.

The Boa Sorte development was delivered on time and on budget, and also illustrates Hydro Rein's commitment to ambitious sustainability standards such as International Finance Corporation Performance Standards (IFC PS) and Equator Principles.

The 438 megawatt (MW) solar complex Boa Sorte will supply renewable energy to Albras, Brazil's largest primary aluminum producer.

Boa Sorte will supply renewable energy to Albras, Brazil's largest primary aluminum producer. The solar plant will supply about 12 percent of Albras' total energy consumption, under a 20-year power purchase agreement (PPA), from 2025 to 2044.

"This is a significant milestone for Albras to secure our long-term strategy of greener aluminium production. With this investment we are securing Albras long term energy sourcing as well as diversifying our energy matrix, and by investing in renewable sources we reinforce our commitment to be part of the solution for the green transition. We want to contribute to creating a fair society by producing responsibly using renewable energy as concepted since the startup," says João Batista Menezes, Albras CEO.

Hydro Rein has developed the project jointly with Atlas Renewable Energy, an international renewable energy company with a solid track record in Latin America.

"Boa Sorte is a significant project for us because it marked our initial PPA to supply clean energy to Albras. This successful collaboration has been repeated in Vista Alegre, which is currently under construction. Boa Sorte is also unique given it was our first solar project in Brazil to secure a dollar indexed loan from BNDES. Moreover, Boa Sorte stands as a testament to our commitment to delivering projects on time and on budget, contributing to our 100 percent completion rate track record," says Fabio Bortoluzo, Country Manager for Atlas Renewable Energy in Brazil.

Hydro Rein is a leading provider of renewable energy solutions for industry. Created in 2021 as part of the sustainability strategy of Hydro, an integrated aluminium and energy company, Hydro Rein's strategy is focused on the industrial need to decarbonize, where tailormade solutions are needed to overcome the obstacles of the energy transition.

Hydro Rein has a diversified portfolio with more than 60 renewable energy and energy efficiency projects under development in key markets in the Nordic countries and Brazil. After three years of growth in renewable energy, Hydro Rein has a gross capacity of 8.4 GW in its portfolio and long-term contracts signed for a production of 5.3 TWh per year.

Atlas Renewable Energy is an international renewable energy generation company with about 5.8 GW of renewable energy assets, of which 2.7 GW are operational. Atlas has specialized in developing, financing, constructing, and operating renewable energy projects since early 2017. The company has an experienced team with a deep global power market and renewable energy expertise, with the longest track record in the renewable energy industry in Ibero-America.

The company's strategy is focused on helping large corporates make the energy transition to clean energy. Atlas Renewable Energy is widely recognized for its high standards in developing, constructing, and operating large-scale projects, as well as its deep and long-standing track record in ESG and sustainable development.

Albras is the largest producer of primary aluminium in Brazil and has been supplying the domestic and foreign markets with high-purity ingots since 1985. Hydro is the company's main shareholder, with 51 percent of the shares in this joint venture. The other shareholder owner of 49 percent of the shares is NAAC, Nippon Amazon Aluminium Co., Ltd., a Japanese consortium formed by a Japanese governmental agency, trading companies, consumers and manufacturers of aluminium products.

Published: 3 April 2024

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