Statoil to make entry into solar power market. Credit: Statoil ASA.

Norway-based oil and gas company Statoil has entered an agreement to buy a 40% share in the 162MW Apodi solarpower project in Brazil from Scatec Solar.

The deal is expected to help Statoil enter the solarpower development market.

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Following the deal, Scatec Solar will own a 40% share, while Brazilian consortium ApodiPar will hold 20%.

In addition, Statoil and Scatec Solar have agreed to form a 50/50 joint venture (JV) to build, own, and operate additional large-scale solarpower facilities in Brazil.

Statoil is expected to pay a total consideration of $25m to Scatec Solar for both of the deals.

“The farm is scheduled to be commissioned by the end of next year and is estimated to require a capital expenditure (capex) of $215m.”

Statoil New Energy Solutions executive vice-president Irene Rummelhoff said: “Brazil is a core area for Statoil where our ambition is to deliver safe and sustainable growth in a significant energy market.

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“Entering into solar in Brazil adds to the positions we have already in the producing Peregrino oil field and in the offshore licenses BM-S-8 and BM-C-33, which include the yet to be developed discoveries Carcaráand Pão de Açúcar.”

Construction of Scatec Solar’s Apodi project is due to begin this month and aims to supply around 160,000 households with clean electricity when completed.

To be situated in Quixeré, the farm is scheduled to be commissioned by the end of next year and is estimated to require a capital expenditure (capex) of $215m.

Various project financing sources will be used to fund 65% of the project, while the reaming 35% will be funded through an equity contribution, where Statoil’s equity share will be around $30m.

The Apodi facility will supply power to the Brazilian grid under a 20-year power purchase agreement (PPA).