Scatec starts construction at the 142 MW Urucuia solar project in Brazil

Scatec Solar ASA

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Oslo/Sao Paulo, 20 December 2024: Scatec ASA, a leading renewable energy solutions provider is starting construction of the 142 megawatt (MW) solar plant in Minas Gerais in Brazil. Scatec has further secured a debt facility of EUR 25 million from IFU, the Danish Investment Fund for Developing Countries, to partially fund Scatec’s equity share in the project, bringing Scatec’s expected equity injection to USD 28 million.

Scatec has signed a PPA with Statkraft for the project for about 75% of the expected power produced. The remainder is expected to be sold under short, medium, and long-term term contracts (PPAs).

The estimated total capital expenditure for the solar plant is USD 85 million, to be financed by long-term non-recourse project debt covering 35%, and the reminder to be financed by Scatec equity and the short-term facility from IFU. Financial close for the long-term project debt for the solar plant is expected in the first half of 2025, with commercial operations expected to start in the first half of 2026.

"We are very excited to start construction of our third solar project in Brazil which will take our total capacity in the country to 835 MW. This is our first plant in the southeast submarket where power demand is strong, diversifying and strengthening our Brazilian portfolio. Brazil is one of our core markets, and we will continue to seek opportunities and push the green transition forward,” says Scatec CEO Terje Pilskog.

Scatec will have a 100% ownership stake in the solar plant, with the aim to bring on equity partners once commercial operation is reached to enhance value creation. Scatec will also be the EPC manager for the project, but with a limited EPC scope. Scatec will provide Operations & Maintenance and Asset Management services to the solar power plant.

For further information, please contact:
For analysts and investors: Andreas Austrell, VP IR, phone: +47 974 38 686, andreas.austrell@scatec.com
For media: Meera Bhatia, SVP External Affairs & Communications, phone: +47 468 44 959, meera.bhatia@scatec.com

About Scatec  
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets. As a long-term player, we develop, build, own, and operate renewable energy plants, with 5 GW in operation and under construction across four continents today. We are committed to grow our renewable energy capacity, delivered by our 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.  

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Brage Krogsrud, IR Analyst at Scatec ASA, on 20 December 2024 at 16:57 CET