Sep 24, 2022 ·

Norsk Hydro's renewable energy unit in supply talks in Brazil - Reuters.com

Norsk Hydro logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration

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SAO PAULO, July 21 (Reuters) - Newly launched in Brazil, aluminium maker Norsk Hydro's (NHY.OL) renewable energy unit Hydro Rein is looking to boost its presence by supplying green electricity to large industries seeking clean power, a company executive said.

The Norwegian company's renewable energy unit has already invested in solar and wind power projects to supply electricity to three of Norsk's Brazilian industrial complexes, totaling around 1.5 gigawatts of generation capacity.

Now, it plans to expand its presence in the Brazilian energy market, Rein's country head, Marcela Jacob, told Reuters in an interview.

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"It is already part of our strategy to support Hydro's plants in the transition to low-carbon economy, but we do not want to limit ourselves to that. Our expansion plan goes further, focused on industrial consumers, whose needs we understand," she said.

Jacob said Norsk, as a major power consumer, has an advantage when it comes to negotiating supply contracts with other industrial players.

"We have already started to bid on projects from industrial clients," she said. Rein is focusing on long-term deals and auto-production contracts, where it will form a joint venture with the energy consumer to develop the project.

In the future, Rein also sees room to develop green hydrogen projects in Brazil along with Hydro Havrand, Norsk Hydro's green hydrogen unit.

"This is a very important market, we see a great potential ... They (Havrand) are looking at Brazil," Jacob said.

Earlier this month, Rein and Australian-based Macquarie Asset Management's Green Investment Group announced plans for a 586 megawatt wind and solar power plant in the northeast of Brazil to supply Norsk Hydro's existing operations. read more

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Reporting by Letícia Fucuchima; writing by Peter Frontini; editing by Richard Pullin

Our Standards: The Thomson Reuters Trust Principles.

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