Equinor has signed an agreement with Denham Capital to acquire Rio Energy, a leading onshore renewable energy company in Brazil, disclosed in Message from the company on Friday.
The agreement includes select assets from Rio Energy’s portfolio, and following the agreement, Equinor will own 100 percent of Rio Energy and maintain approximately 140 employees.
– By building an attractive renewable energy niche in the country, along with a strong portfolio in oil and gas, we support Brazil’s ambitions for a diversified energy mix, says Veronica Coelho, Equinor’s country director in Brazil, in a press release.
You buy 2 gigawatts
The portfolio that Equinor is acquiring consists of the 0.2 GW Serra da Babilonia 1 onshore wind farm, which is already operational in Bahia, a 0.6 GW solar development portfolio, and a development portfolio of approximately 1.2 GW of onshore wind and solar projects.
Rio Energy will become a wholly owned subsidiary of Equinor, and the company’s employees and management will continue to develop the existing portfolio. Equinor expects the portfolio to yield a return in the higher level than the expected real yield of 4-8 percent for renewable projects, including the transaction price.
The transaction price is still unknown.
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