A ArcelorMittal, one of the largest steel producers in Brazil, announced this Wednesday (21) the signing of two contracts for the installation of two solar parks in the interior of the states of Minas Gerais and Bahia.
The contracts were signed with the Atlas Renewable Energy and House of the Winds and together, they total R$1,6 billion in investments. The agreements are still subject to approval by the CADE (Administrative Council for Economic Defense).
Jefferson De Paula, president of ArcelorMittal Brasil, explains that investments in solar parks are aligned with the company's objectives of self-sufficiency and decarbonization in Brazil.
“In addition to ensuring the supply of the company’s industrial plants with its own source of renewable energy, the investments aim to diversify the energy matrix, reduce operating costs and increase our competitiveness,” said the executive.
The two plants have an average generation capacity of 113 MW/year, which will represent 14% of the current electricity consumption of ArcelorMittal units in Brazil.
With Atlas Renewable Energy, the contract represents the first partnership signed between the company and ArcelorMittal for the production of renewable energy. The objective is to build the Luiz Carlos Solar Park, in Paracatu (MG).
The investment will be R$895 million in the plant, which has an expected production of 69 MW on average/year and an installed capacity of 269 MW.
The contract established between the steel producer and Atlas follows the BOT (Build, Operate and Transfer) model, in which a joint venture is formed during construction and, after entering commercial operation, all capital will be acquired by ArcelorMittal.
The entire volume of energy generated by the plant will be used for ArcelorMittal's operations and the plant is expected to be in full commercial operation in December 2025.
The project also foresees the installation of a 65 km transmission line, at 500 kV, to the SIN (National Interconnected System), step-up substation and connection bay at the Paracatu 4 substation.
The agreement with Casa dos Ventos provides for the formation of a new joint venture for the implementation of a solar energy project in the same area as the Babilônia Centro wind complex, still under construction, in the municipalities of Morro do Chapéu and Várzea Nova, in the interior of Bahia.
In this new agreement, ArcelorMittal will have a 55% equity stake and Casa dos Ventos will have a 45% equity stake. With an investment of approximately R$690 million, the plant will have 200 MW of installed capacity and an expected annual generation capacity of 44 MW average. The park will be in commercial operation in December 2025.
Energy Efficiency
The ArcelorMittal Group's decarbonization plan in Brazil aims to make the company carbon neutral by 2050 and, as an intermediate step, reduce its specific emissions by 25% by 2030.
In total, the company has already invested around €300 million in developing technologies to reduce emissions through its research and development centers.
To this end, the company plans to invest more than US$10 billion by 2023. “Entering the solar market reinforces the company's commitment to leading the decarbonization process,” stated De Paula.
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