Denham Capital, a global energy transition investment firm, announced the signing of an agreement with Equinor, a Norway-based energy company, for the sale of Rio Energy’s select assets, the Rio Energy trade name, and the management team platform.

Rio Energy is a Brazil-based developer, owner, and operator of renewable energy projects.

The acquired assets include the 0.2 GW Serra da Babilônia 1 producing onshore wind farm located in the northeastern state of Bahia, a 0.6 GW pre-construction solar PV portfolio, and a project pipeline of approximately 1.2 GW.

The agreement between Denham Capital and Equinor will result in an Equinor subsidiary fully owning Rio Energy companies that operate under the Rio Energy trade name.

With the support of Denham Sustainable Infrastructure’s investment and support, Rio Energy has transformed into a national renewable energy platform in Brazil, boasting a substantial portfolio of operational and under-construction onshore wind projects, as well as a promising pipeline of onshore wind and solar projects.

Despite the asset sale, Denham Capital will still retain 1.1 GW of Rio Energy’s assets, which include three operational onshore wind projects: the 0.1 GW Caetité project, the 0.2 GW Itarema project, and the 0.2 GW Serra da Babilônia 3 project.

Additionally, they will keep the 0.2 GW in construction Caetité Norte onshore wind project and around 0.4 GW of onshore wind and solar pipeline projects. To ensure continued success, Denham Capital will establish a new management team specifically dedicated to these projects.

The transaction is still subject to typical regulatory and lender approvals, ensuring all necessary checks and balances are in place before finalizing the deal.

Sarah Lane, Managing Director of Denham Sustainable Infrastructure, emphasized Denham’s value-add strategy, which supports industry-leading teams committed to delivering low-cost, sustainable power generation, particularly in high-growth economies like Brazil.

Marcos Meireles, CEO and co-founder of Rio Energy, expressed his belief that now is the right time to move forward with Equinor to further their commitment to a more sustainable future for Brazil.

According to recent data released by Brazil’s National Electric Energy Agency (ANEEL), renewable sources accounted for 83.64% of the 193.9 GW of power generated in the country between January and June.

In October 2022, the French energy conglomerate TotalEnergies and Casa dos Ventos announced the creation of a joint venture to develop, build, and operate 12 GW of renewable energy projects in the country.