Hydro Rein and Atlas Renewable Energy’s joint venture to build the Boa Sorte solar park in Paracatu, Minas Gerais, has secured financial aid, according to the report published on January 6. Hydro said the JV obtained the first US dollar indexed loan executed by Banco Nacional de Desenvolvimento Econômico e Social (BNDES), the Brazilian Development Bank.
The joint venture between Hydro Rein and Atlas Renewable Energy was formed in May 2022 to develop the solar project in Brazil. Albras Alumínio Brasileiro S.A. (ALBRAS), the second-largest aluminium producer in Brazil, is expected to procure power from this solar park to feed its smelter in the state of Para, Brazil.
BNDES, for the first time, executed US dollar indexed loan worth $210 million to a renewable energy project after the new regulation started allowing exporters to enter into dollar dominated power purchase agreements (PPAs). The loan thus sets an example of financing large-scale renewable energy projects to decarbonise the industry in Brazil.
Bao Sorte solar plant, located in the state of Minas Gerais, is estimated to start operations in the fourth quarter of 2023. The total estimated investment required for the project is US$320 million. Hydro Rein will own 33 per cent of the project.
The plant will have an installed capacity of 438 MW and generate 815 GWh of energy annually, equivalent to providing clean energy to more than 394,000 homes and offsetting more than 61,000 tonnes of carbon emission per year.
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