Norway’s Equinor has acquired a 9.7% stake in renewable energy firm Scatec Solar for a total purchase price of $82.4m.
The latest stake acquisition takes of the total ownership of Equinor in Scatec Solar to 10%.
Scatec Solar is an integrated independent solar power producer with an installed capacity of 357MW and another 1,057MW under construction.
Headquartered in Oslo, Norway, the company has a project backlog and pipeline of about 4.3GW under development in the Americas, Africa, Asia and the Middle East.
Equinor’s New Energy Solutions executive vice president Pål Eitrheim said: “The investment in Scatec Solar will increase Equinor’s exposure to a fast growing renewable sector, further complementing Equinor’s portfolio with profitable solar energy.
“This is in line with our strategy to develop into a broad energy company.”
The Apodi solar asset in Brazil was Equinor’s first development project in partnership with Scatec Solar. It was followed by the Guanizul 2A solar asset in Argentina.
In October 2017, Statoil (now Equinor) had acquired a 40% share in the construction ready 162MW Apodi asset from Scatec Solar. The project is expected to supply electricity to nearly 160,000 households.
In June 2018, Equinor had signed an agreement with Martifer Renewables to acquire a 50% stake in the Guanizul 2A (G2A) solar asset. Scatec Solar acquired the remaining stake in 117MW ready-to-build solar project.
The Guanizul 2A solar project has a potential to supply around 80.000 Argentine households with renewable energy.
Eitrheim said: “Scatec Solar is our existing partner in Brazil and Argentina and we value their capabilities and experience.
“They are a competitive and well-respected solar company and we are supportive of Scatec Solar’s management, board of directors and strategy. This minority stake of around 10% is made with a long term perspective,”
Over the past few years, Equinor has also developed a sizeable offshore wind portfolio. Currently, the company is the operator for 317MW Sheringham Shoal , 402MW Dudgeon and 30MW Hywind Scotland.
Besides, Equinor is a partner in the E.on-operated 378MW Arkona wind farm.