Macquarie Asset Management’s Green Investment Group and Hydro Rein to develop hybrid wind and solar project in Brazil

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 586 MW combined wind and solar power project in the northeast of Brazil. GIG and Hydro Rein will also finalise the project’s development alongside Casa dos Ventos, an experienced Brazilian renewable energy company with a 43.5 GW portfolio of wind and solar projects.

The project will supply 100% of the electricity required for Hydro Rein’s bauxite mine Paragominas and will further reduce carbon emissions from Hydro Rein’s alumina refinery Alunorte, by enabling the switch away from coal boilers by 2030. Alunorte and Paragominas have both signed long-term US dollar power purchase agreements (PPAs) with Feijão under a Brazilian self-production structure. The project will be an important enabler to reach Hydro’s target of a 30% reduction of its own emissions by 2030.

The hybrid wind and solar project is located in the states of Piauí and Pernambuco, and will be built in one of the largest wind farm clusters in Latin America. The Project has entered into a Turbine Supply Agreement and associated long term Service and Availability Agreement with the Nordex Group for 80 N163/[5.7X]MW Wind Turbine Generators, and a Balance of Plant (BOP) agreement with Eleconor. The 80 turbines have a combined capacity of 456 MW and will be constructed in phase one, with the option to develop up to 130 MW of solar capacity 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.  

"We are very pleased to play a part in developing more renewable energy in Brazil together with Green Investment Group. 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."

Oliver Girardot
Head of Hydro Rein

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. This is the fifth investment made through Macquarie Green Investment Group Renewable Energy Fund 2 and follows recent agreements to invest in two French solar developers, Reden Solar and Apex Energies Group.

GIG is a specialist green investor within Macquarie Asset Management, and a global leader in the development of companies, assets and technologies that aim to accelerate the global transition to net zero. GIG began operating as part of Macquarie Asset Management in April 2022. The combined teams significantly enhance Macquarie Asset Management’s offering in green investments, with the $US579 billion asset manager now overseeing investments in more than 46 GW of capacity.

"Brazil has vast potential for wind development, and we are delighted to be partnering with Hydro Rein on this late-stage project. Hydro Rein’s Brazillian energy market expertise and regional presence, combined with our global wind and infrastructure experience, make for a strong partnership that can provide a boost to Brazil’s supply chain and ambitions to engage with the global wind opportunity."

Mark Dooley
Global Head of the Green Investment Group

Elecnor do Brasil, which has been working on the construction of electricity projects in Brazil for more than 40 years, will be responsible for building the civil and electromechanical BOP of the new wind plant. Their work will last 18 months, and support about 700 new jobs at its peak, whilst prioritising the hiring of local labour. Their work on the project involves the construction of all civil infrastructure, the medium voltage network, substations, transmission lines and the opening of access roads to towers, drainage, and foundations for the installation of 80 wind turbines.