Inspenet, April 29, 2023
ArcelorMittal Brasil, the Brazilian entity of the steel company ArcelorMittal , announced that it will form a joint venture with Casa dos Ventos, one of the main developers and producers of renewable energy in Brazil.
The association aims to develop a wind energy project with a generation capacity of 554 MW, which involves an investment of around USD 800 million.
The joint venture, which has received approval from competition authority CADE, will be owned 55% by ArcelorMittal Brasil and 45% by Casa dos Ventos. This company will be included in the consolidated accounts by the equity method and ArcelorMittal’s total investment in capital will amount to approximately 150 million dollars (USD).
The project, called Babilonia, will cover 38% of ArcelorMittal Brazil’s total electricity needs in 2030 and will be a key tool for the decarbonization of the company.
The Babylon project: a key tool for the decarbonization of ArcelorMittal Brazil
ArcelorMittal CEO Aditya Mittal said the partnership with Casa dos Ventos will allow the company to take advantage of Brazil’s favorable climate for renewable energy generation and move faster towards meeting climate targets.
“The recent acquisition of CSP immediately strengthens our presence in the high-growth Brazilian market and offers us exciting options for the future. Parallel to the expansion of our presence and the creation of value for our activities in Brazil, we are aware of the responsibility we have to decarbonise our processes”.
Jefferson de Paula, President of ArcelorMittal Brazil, added: “In addition to the recent acquisition of CSP, we have several ongoing organic growth projects in the finishing area that will allow us to expand our presence and strengthen our ability to produce higher value-added products. ”.
The Babilonia project will be located in the central region of Bahia, northeastern Brazil, where the anticipated load factor is expected to be greater than 50%. In addition, the proximity to the national electricity grid (only 23 km away) and the potential to expand the project with an additional 100 MW of solar power capacity are expected to be an important competitive advantage.
ArcelorMittal establishes its third strategic partnership for the supply of renewable energy in the last year
This project is the third strategic association established by ArcelorMittal in the last year for the supply of renewable energy. In March 2022, the company announced an agreement with the Greenko Group in India for the development of an uninterrupted generation project for solar and wind power with a capacity of 975 MW.
The project will supply ArcelorMittal’s Indian steel joint venture, AM/NS India, meeting more than 20% of its electricity supply needs and reducing its carbon emissions by approximately 1.5m tonnes/year.
On the other hand, in Argentina, ArcelorMittal has established a renewable energy purchase agreement with the renewable energy company Genneia.
ArcelorMittal leads the green transformation
The Babilonia project will help the company prepare for the future, allowing it to ensure the coverage of its long-term energy needs in a responsible, sustainable and efficient manner in terms of costs, in the same way, it will reduce electricity costs and provide energy security to the company’s Brazilian business.
The operation of the joint venture will be completed in the next 15 days, with construction work on the Babilonia project expected to begin this year. The start of operations is scheduled for 2025.
Photos : Envato
Don’t miss the Inspenet News at: https://inspenet.com/inspenet-tv/
Loading...
