Denham Sustainable Infrastructure (DSI) has established a new renewables player Pontal Energy in Brazil. This was followed by the transaction with Equinor for the sale of certain Rio Energy assets, the Rio Energy trade name, and the management team platform. Pontal Energy will oversee the continued growth of the assets and pipeline retained by Denham in the transaction.

Pontal Energy will be in charge of a vast portfolio of renewable energy assets, handling around 1 GW of renewable capacity. Reportedly, three running onshore wind projects are included in this: the 0.1 GW Caetité project, the 0.2 GW Itarema project, and the 0.2 GW Serra da Babilônia 3 project. Additionally, it also retains the c. 0.2 GW in development Caetité Norte onshore wind project, and c. 0.3 GW of onshore wind and solar pipeline projects.

In July 2023, Denham Capital declared the sale of Brazilian renewable energy company Rio Energy assets to Equinor. The transaction included selected Rio Energy assets and management team platform. Denham Capital will continue to own 1.1 GW of Rio Energy’s selected assets despite the asset sale.

REGlobal’s Views: Brazil has emerged as an important renewable energy investment destination in South America. The country is trying to reduce its dependence on hydropower by increasing the share of renewables, and is witnessing the entry of large developers with massive pipelines.