Equinor ASA ( EQNR Quick Quote EQNR - Free Report) teams up with Petrobras ( PBR Quick Quote PBR - Free Report) to develop the Aracatu wind farm, an offshore wind project off Brazil’s southeast coast.
The Aracatu wind farm, situated 20 kilometers off the Brazilian coast in the Campos Basin, will supply 4 gigawatts (GW) of offshore wind capacity. Equinor and Petrobras are currently assessing the project’s environmental feasibility.
In 2018, Equinor signed a memorandum of understanding with Brazil-based energy major Petrobras to develop the offshore wind energy segment in Brazil. Notably, Equinor filed an application to commence the environmental permitting process for the Aracatu project two years ago.
Equinor appealed for environmental explorations for six projects in four Brazil states, with 14,370 megawatts currently under examination. Aracatu is the biggest offshore wind development, which Equinor is developing in the country. The remaining projects range between 2 GW and 2.5 GW.
Equinor started the Ibama license for the Aracatu project, comprising Aracatu I and Aracatu II offshore wind farms. The wind farms are expected to generate adequate power to satisfy the requirements of 2 million homes.
Brazil currently has 21 GW of wind power capacity, which constitutes about 10% of the country’s total power generation. The country has immense potential to be a global leader in the segment. The generation method aligns well with Petrobras’ expertise and capability in the maritime environment, particularly in deep and ultra-deep waters.
Offshore wind farms are one of Petrobras’ eco-friendly alternatives, along with the development and production of advanced biofuels. The company also focuses on the development of advanced biofuels, which include jet fuel.
Company Profile & Price Performance
Headquartered in Stavanger, Norway, Equinor is one of the leading integrated energy companies in the world.
Shares of EQNR have outperformed the
industry in the past six months. The stock has gained 34% compared with the industry’s 33.8% growth.
Image Source: Zacks Investment Research Zacks Rank & Other Stocks to Consider
Equinor currently flaunts a Zack Rank #1 (Strong Buy).
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