30% Brighter Future: Equinor Flips The Switch On Huge Brazil Solar Project
Portfolio Pulse from Lekha Gupta
Equinor ASA has initiated operations at its 531 MW Mendubim solar plant in Brazil, expected to boost its equity power production by 30% to over 1.4 TWh in 2024. The plant will generate 1.2 TWh annually, with 60% of the power sold under a 20-year USD-denominated PPA with Norsk Hydro ASA's Alunorte. The project, a joint venture with Scatec and Hydro Rein, aligns with Equinor's diversified energy strategy in Brazil. Despite a 20% Y/Y drop in Q4 FY23 revenue and a 49% fall in adjusted earnings due to lower gas prices, EQNR shares rose by 0.72% to $26.05.
March 08, 2024 | 5:20 pm
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POSITIVE IMPACT
Equinor's Mendubim solar plant in Brazil begins operations, expected to increase power production by 30%. Despite a recent drop in revenue and earnings, EQNR shares are up.
The operational start of the Mendubim solar plant represents a significant positive development for Equinor, indicating growth in renewable energy assets. Despite the recent financial downturn, the positive market reaction (share price increase) suggests investor confidence in Equinor's long-term strategy.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Norsk Hydro ASA's Alunorte is involved in a 20-year USD-denominated PPA with Equinor's Mendubim solar plant, indicating a strategic partnership in renewable energy.
Norsk Hydro ASA's involvement through Alunorte in a long-term PPA with Equinor's Mendubim solar plant highlights a strategic commitment to renewable energy and could positively influence NHYKF's market perception, potentially impacting its stock positively in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70