ASSU, Brazil – IDB Invest participated in the inauguration of the Mendubim Solar Energy project to contribute to climate change mitigation. The megaproject, which includes thirteen photovoltaic plants, will help diversify Brazil's energy matrix toward cleaner sources and reducing CO2 emissions.

The thirteen photovoltaic plants located in the municipality of Assú in the State of Rio Grande do Norte, Brazil, will have a combined capacity of 531 MWp (452 MWac), reducing Brazil's carbon emissions intensity and avoiding more than 7,288 ktons CO2eq over the life of the plants.

This project is an example of IDB Invest's new originate-to-share business model, focused on bridging the region’s most critical gaps, collaborating with the private sector, and attracting institutional investors to maximize impact and contribute to the region's development.

In 2023, IDB Invest provided a loan of up to $130 million to Mendubim Geração de Energia S.A. and mobilized Banco Santander and BNP Paribas through unfunded risk holdings for an amount of up to $113 million. The deal also includes performance-based incentives (PBIs) of up to $10 million funded by the UK Sustainable Infrastructure Program (UK SIP).

Approximately 60% of the expected energy produced will be purchased by Alumina do Norte do Brasil S.A., a subsidiary of Norsk Hydro, through a 20-year power purchase agreement denominated in U.S. dollars. The remaining volumes will be sold on the Brazilian electricity market.

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $21 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.

About Equinor New Energy AS

Equinor has conducted business in Brazil since 2001, and the country is considered one of the core areas for Equinor. Equinor has a solid and diversified oil & gas portfolio in Brazil, with licenses both under development and in production such as Bacalhau, in Santos basin, and Peregrino, in Campos basin. Within renewables, Equinor is owner in the Apodi solar plant along with the operator, Scatec. In 2022, construction work started in the Mendubim solar project realized in partnership with Scatec and Hydro Rein. Together with Petrobras we are evaluating seven offshore wind projects in Brazil.

About Hydro REIN AS

Hydro Rein is a leading provider of renewable energy solutions to industrials, fully owned by the global renewable energy and aluminum company Hydro. Hydro Rein facilitates access to affordable renewable power, sourced from our portfolio of hydro, solar and wind projects in Brazil and the Nordics. In addition, Hydro Rein also provides solutions for onsite generation, energy efficiency, energy storage and flexibility management. The company has a significant portfolio in the Nordics and in Brazil (1.7GW in construction and operations) with strong near-term growth potential (5 GW in the pipeline).

About Scatec ASA

Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in emerging markets. As a long-term player, we develop, build, own and operate renewable energy plants, with 4.6 GW in operation and under construction across four continents today. We are committed to grow our renewable energy capacity, delivered by our 700 passionate employees and partners who are driven by a common vision of ‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.

About UK SIP

The UK Sustainable Infrastructure Program (UK SIP) is providing up to £177.5 million from the UK’s International Climate Finance to support partner countries to achieve their emission reduction commitments by mobilizing private investment into low carbon infrastructure. The Program provides public and private sector technical assistance and blended finance investments in Brazil, Colombia, Mexico, and Peru.