Norsk Hydro Inks Duo Of Deals For Renewable Energy Plants In Brazil

Norsk Hydro Inks Duo Of Deals For Renewable Energy Plants In Brazil

Norwegian aluminium smelter Norsk Hydro ASA signed a pair of Memorandums of Understanding aimed at establishing renewal energy operations.

This month Hydro signed a MoU with Scatec and Equinor contemplating a 480 MW solar power plant in Brazil. The parties would join to develop the plant, with a portion of its output promised to Hydro for its bauxite and alumina projects in country. Land has already been purchased for the project, and the firm expects a decision on going forward with the plan at some point in the coming year.

Hydro also signed a MoU with Green Investment Group (GIG) to build a 620-MW wind and solar operation in northeast Brazil. It also expects to reach a final decision on that project in 2021.

Hydro says the two agreements are another critical step on the road to creating its new Renewable Growth unit. The unit’s task is to offer competitive renewable power to the company’s operations both in Brazil and Scandanavia.

Olivier Girardot, Head of Renewable Growth, elaborated upon his unit’s task in a related press release.

“Hydro aims to lower the CO2 footprint from the company’s operations by 30 percent by 2030, and most of the reduction will come from its operations in Brazil. To reach that target, sufficient access to renewable energy is fundamental. These projects demonstrate our resolve to partner with industry leaders to develop a substantial and balanced portfolio of renewable projects that Hydro can source from in the near future.”

Norsk Hydro, which was founded in 1905, financed by the Swedish Wallenberg family and French banks, began its life named Norsk hydro-elektrisk Kvælstofaktieselskab (literally, “Norwegian hydro-electric nitrogen limited”) by Sam Eyde. The Norwegian government owns approximately 40% of the company at the present time. Norsk Hydro is one of the largest aluminium companies in the world, with plants in Rjukan, Raufoss, Vennesla, Karmøy, Høyanger, Årdal, Sunndalsøra, and Holmestrand. Norsk also has several plants abroad, including in Germany and Brazil.