Danske Commodities expands trading activities to Brazil
Equinor’s wholly-owned trading company Danske Commodities Comercializadora de Energia Ltda has now completed its first trades in the Brazilian power market, marking a key milestone for Danske Commodities’ global expansion strategy and its first market entry in South America.
“We are proud to announce that Danske Commodities is now officially active in Brazil’s power market. From our newly established office in São Paulo, we will build on our 20 years of experience with power trading in European energy markets,” said Jesper Tronborg, VP, Head of Global Trading & Market Development at Danske Commodities.
With Danske Commodities’ first power trades in Brazil now completed, the trading company is gearing up to enable owner Equinor’s market-driven approach to renewables in the region.
Equinor acquired Danske Commodities in 2019 to strengthen its ability to capture value from its renewable portfolio. Danske Commodities is a wholly-owned subsidiary of Equinor operating under its own name and brand while increasingly collaborating across relevant commercial and operational activities with Equinor. Danske Commodities will help manage Equinor’s growing portfolio of renewable energy, which includes investments in the 162 MW Apodi solar plant and the 531 MW Mendubim solar project.
“Equinor has conducted business in Brazil for over two decades, and we see the country as a core area for safe and sustainable long-term growth. We are working to build a diversified energy offering with a robust oil and gas portfolio and an attractive renewables position. Danske Commodities’ presence in Brazil is an important enabler of our strategy and ambition of being a leading company in the energy transition,” said Veronica Coelho, Equinor’s country manager in Brazil.
Danske Commodities has also invested R$ 288 million in the equity of its operations in Brazil, in addition to having the financial backing of Equinor, which holds an Aa2 credit rating from Moody’s.
“Financial robustness is key in a bilateral market like Brazil. By making this initial equity investment, we show our commitment as a market participant in Brazil, which is the largest energy market in South America with demand of 70 GW,” said Tronborg, and he concluded:
“Danske Commodities joins the Brazilian power market with a long-term vision of being a robust counterparty and the power trading arm of Equinor.”
Danske Commodities is active in 40 power markets across Europe, Australia, the US and now also in Brazil.