Cubico Sustainable Investments (Cubico), one of the world’s largest privately-owned renewable energy companies, has entered into an agreement with ZEG Energias Renováveis (ZEG) for the acquisition of Project Sobral, a 1 GW solar PV project under development in Brazil.

The transaction comprises a large solar PV complex located in the municipalities of Sobral and Santana do Acaraú in the state of Ceará.

Project Sobral, one of the largest solar development projects in the country, is expected to generate more than 2,000 GWh per year, enough energy to power approximately a million Brazilian homes.

Cubico and ZEG will co-develop the project, including the negotiation of supply contracts and offtake agreements with third parties.

Francisco Moya, Country Head of Brazil and Rest of Latam at Cubico, said: “This important acquisition consolidates our presence in Latin America and marks the start of our new renewables platform in Brazil after recent strategic divestments in the country. It’s also our first investment in solar assets in Brazil and we will be actively looking to grow the portfolio through the acquisition and development of other PV and onshore wind projects.

“We also see this as the start of an exciting partnership with ZEG, where we combine Cubico’s global in-house development capability, construction and operational experience and proven financing track-record with their expertise on renewable projects development and energy commercialization in the local market.”

Javier Areitio, Head of Origination and Development at Cubico, added: “This transaction reflects our focus on accelerated growth and greenfield development, both at the centre of our ambitious new strategy.

“We look forward to building our global portfolio further as we increase our commitment to driving the energy transition and bringing clean power to people and communities around the world.”

Daniel Rossi, CEO of ZEG, said: “Project Sobral will increase our availability of renewable energy to consumers and clients interested in decarbonizing their productive process.

“As part of Grupo Capitale, ZEG has the potential to strategically allocate this energy in the free market, offering good opportunities for companies committed to ESG goals.”

Cubico was advised by Machado Meyer (Legal), RINA (Technical) and KPMG (Due Diligence and Model Review). ZEG was advised by Trench Rossi Watanabe (Legal) and Virtus BR Partners (Financial)

The conclusion of this transaction remains subject to the fulfilment of the conditions precedent agreed within the scope of the acquisition, which are customary for this type of transaction and include, but are not limited to, approval of the Administrative Council for Economic Defense (CADE).