Norwegian energy major Equinor ASA (NYSE:EQNR) has struck a deal to acquire Brazilian onshore renewables company Rio Energy, excluding certain assets, from global energy transition investor Denham Capital.
Under the terms of the agreement, the power generation assets, the Rio Energy trade name and the management team will be transferred to an Equinor subsidiary.
More specifically, the Norwegian group will acquire the roughly 200-MW Serra da Babilonia 1 onshore wind farm in Bahia, a pre-construction solar PV portfolio approximating 600 MW, and an onshore wind and solar project pipeline of about 1.2 GW.
In turn, Denham will carve out assets totalling 1.1 GW, including 0.5 GW of operational onshore wind farms — the 0.1-GW Caetite, the 0.2-GW Itarema, and the 0.2-GW Serra da Babilonia 3. The rest of the assets to be retained include the 0.2-GW Caetite Norte onshore wind park, currently under construction, and a 0.4-GW wind and solar project pipeline. Denham said it plans to bring these projects to the market in the coming year.
“Through Rio Energy, Equinor will take a leading position in the rapidly growing Brazilian renewables industry. It accelerates production and cash flow, gives us a strong platform for growth, and adds capabilities and an attractive project pipeline,” commented Pal Eitrheim, Equinor’s executive vice president for Renewables.
The transaction is awaiting regulatory clearance.
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