The Macquarie-owned Green Investment Group (GIG) and Hydro Rein have agreed to form a joint venture to build and operate a 586MW wind and solar power project in Brazil’s north-east region.

Named Feijão, the wind and solar hybrid project will be developed in the Brazilian states of Piaui and Pernambuco.

Feijão will be equipped with 80 turbines, which will be delivered by wind turbine manufacturer Nordex.

The project’s first phase will involve the development of a wind farm with 456MW of capacity, while the second phase will have the option to develop a 130MW solar power facility.

It is estimated that the hybrid project will require a capital expenditure of $700m.

GIG’s Renewable Energy Fund II will be the largest stakeholder in the project, owning 50.1%, while the remaining 49.9% stake will be held by Hydro Rein.

Once operational, the clean energy generated by the plant will be supplied to Hydro Rein’s bauxite mine Paragominas, as well as its alumina refinery Alunorte, under a power purchase agreement.

Hydro Rein head Oliver Girardot said: “We are very pleased to play a part in developing more renewable energy in Brazil together with Green Investment Group.

“This project is an important milestone in the efforts to decarbonize Alunorte and an important milestone for Hydro Rein developing its portfolio of Brazilian assets.”

GIG global head Mark Dooley said: “Brazil has vast potential for wind development, and we are delighted to be partnering with Hydro Rein on this late-stage project.

“Hydro Rein’s Brazillian energy market expertise and regional presence, combined with our global wind and infrastructure experience, make for a strong partnership that can provide a boost to Brazil’s supply chain and ambitions to engage with the global wind opportunity.”

Last October, GIG acquired the rights for the Kattegatt offshore wind farm in Sweden.