Hydro Rein and Macquarie Asset Management announce commencement of commercial operations for 456 MW onshore wind power complex in Brazil

Ventos de São Zacarias (VSZ) features 80 wind turbines, each standing 120 meters tall and connected together in a network of almost 150 kilometers of medium voltage cables.

Sustainability was a priority consideration throughout development, and the projects adopted leading international practices on social and environmental performance, developed by the International Finance Corporation (IFC). The IFC Performance Standard 6 requires commitment to No Net Loss of biodiversity for impacts to natural habitat.

To support this commitment, the projects have established a nursery to produce seedlings of native plants species. In total, the projects aims to produce more than 20,000 trees, which will then be planted in the project area. VSZ also sponsored an agricultural program to support local farmers as part of a livelihood restoration plan and conducted several other measures aimed at improving the living and working conditions for local communities.

"This achievement marks a significant step forward in our mission to promote renewable energy solutions and decarbonize industries in Brazil. Ventos de São Zacarias not only demonstrates our commitment to sustainability but also reinforces our investment in the local economy, creating jobs and supporting community development," said Head of Hydro Rein in Brazil, Marcela Jacob.

The wind power complex reached commercial operation ahead of schedule, and importantly did so while adhering to Macquarie and Hydro Rein's strong commitment to workplace health and safety. Across more than 5.5 million hours worked with a peak of almost 2,000 workers on site, the construction of VSZ resulted in zero fatalities or life-changing injuries, and a lost-time incident (LTI) rate below industry average for both Brazil and Latin America.

Additionally, VSZ noted that the projects underwent more than 10,000 safety inspections, three comprehensive third-party safety audits and three external environmental audits, demonstrating Macquarie and Hydro Rein's dedication to the highest health, safety, and environmental standards.

"Today's milestone is a demonstration of our commitment to generating positive long-term outcomes for our clients, portfolio companies and communities," said Fernando Lohmann, Brazil Country Lead for Macquarie. "We remain dedicated to strengthening the critical infrastructure of Brazil through Ventos de São Zacarias and other investments in the future."

The commencement of commercial operations was facilitated by a syndicate of commercial banks, and positions VSZ to become the first US dollar-denominated renewables wind complex in Brazil financed exclusively by commercial banks. Operations began roughly four months after the closing of an investment in a 49.9 per cent stake in Hydro Rein by Macquarie Asset Management, itself an expansion of the existing partnership between Hydro Rein and Macquarie Asset Management. 

VSZ supplies electricity to Hydro's alumina refinery, Alunorte, and bauxite mine, Paragominas, under two long-term power purchase agreements. The remaining output will be sold on the open market.

VSZ is the third power plant complex developed by Hydro Rein and its partners in Brazil. Earlier in 2024, the company started operations at Mendubim and Boa Sorte, solar plant complexes located in Rio Grande do Norte and Minas Gerais.

About Hydro Rein

Hydro Rein is a leading provider of renewable energy solutions to industrials, co-owned by the renewable energy and aluminium company Hydro and infrastructure investor Macquarie Asset Management. The company has a diversified portfolio of more than 60 wind, solar and energy efficiency projects under development in core markets in the Nordics and Brazil. After three years of growth in renewable energy, Hydro Rein has a gross capacity of 8.4 GW in its portfolio and long-term contracts signed for a production of 5.3 TWh per year.

About Macquarie Asset Management

Macquarie Asset Management is a global asset manager, integrated across public and private markets. Trusted by institutions, governments, foundations and individuals to manage approximately $US634.3 billion in assets, we provide a diverse range of investment solutions including real assets, real estate, credit and equities & multi-asset.

Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory, and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie Group employs over 20,000 people in 34 markets and is listed on the Australian Securities Exchange.

All figures as at 30 September 2024.