Norway’s aluminium titan Norsk Hydro ASA said this week that its subsidiary Hydro Rein’s joint venture with Atlas Renewable Energy for the development of the Boa Sorte Solar plant secured a loan indexed to the US dollar from Brazil’s development bank Banco Nacional de Desenvolvimento Econômico e Social (BNDES).
This loan is the first one issued by BNDES that is indexed to the US dollar to a renewable energy project. Such a loan was made possible due to a new regulation allowing exporting firms to enter into dollar denominated power purchase agreements (PPAs).
Located in Minas Gerais, the Boa Sorte solar plant is expected to come online by the end of the year. The plant is designed to produce 438 MW per year upon commissioning, eventually rising to 815 GWh. Ultimately the solar power plant will offset over 61 thousand tons of CO2 emissions each year.
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.