ArcelorMittal S.A.: ArcelorMittal establishes renewable energy JV with Casa dos Ventos in Brazil
April 18 2023 - 2:00AM
ArcelorMittal S.A.: ArcelorMittal establishes renewable energy JV
with Casa dos Ventos in Brazil
JV to construct a 554MW
wind power project
18 April
2023,
08:00
CET
ArcelorMittal (‘the Company’) today announces that its Brazilian
entity, ArcelorMittal Brazil, will form a joint venture partnership
(‘JV’) with Casa dos Ventos, one of Brazil’s largest developers and
producers of renewable energy projects, to develop a 554 MW wind
power project. ArcelorMittal Brazil will hold a 55 per cent stake
in the JV, with Casa dos Ventos holding the remaining 45 per cent.
The transaction was approved by the Brazilian antitrust authority,
CADE, on 13 April and will be completed within the next 15
days.
The c. $0.8 billion project aims to secure and decarbonise a
considerable proportion of ArcelorMittal Brazil’s future
electricity needs. It is estimated it will provide 38 per cent of
ArcelorMittal’s Brazil’s total electricity needs in 2030. The JV
will be equity accounted and ArcelorMittal’s total equity
investment will be c. $0.15 billion.
Commenting, Aditya Mittal, CEO, ArcelorMittal,
said:
“The recent acquisition of CSP immediately enhances our presence
in the high-growth Brazilian market and provides us with exciting
future options. As we expand our presence and add value to our
Brazilian franchise we are conscious of the responsibility we have
to decarbonise our operations. By collaborating with a respected
energy transition operator in Casa dos Ventos, we can take
advantage of the favourable Brazilian climate for renewable energy
generation and make faster progress towards our climate
targets.
“As well as making climate sense, this project makes financial
and operational sense. It reduces electricity costs and provides
energy security to our Brazilian business and will deliver
consistent, attractive long-term returns.”
Jefferson de Paula, President, ArcelorMittal
Brazil, added:
“In addition to the recent acquisition of CSP, we have several
downstream organic growth projects underway that expand out
footprint and enhance our ability to produce higher added value
products. These expansion plans will lead to a natural increase in
our energy requirements. This project will help to prepare us for
the future, ensuring we secure our long-term energy requirements in
a responsible, sustainable and cost-effective manner.”
The Babilonia project will be located in the central region of
Bahia, north-east Brazil. The site location has been selected due
to several competitive advantages, including high-capacity forecast
load factors (in excess of 50 per cent) and a short distance (23
km) to connect to the national electricity grid. There is also the
potential to expand the capacity of the project by adding a further
100 MW of solar power. The project is currently at an environmental
and regulatory permitting stage, with construction work anticipated
to start later this year and operational commissioning in 2025.
ArcelorMittal Brazil will enter a 20-year power purchase agreement
with the JV for the supply of electricity.
The Babilonia project is the third strategic renewable energy
partnership ArcelorMittal has established in the past year. In
March 2022, the Company announced a partnership with the Greenko
group in India to develop a ‘round the clock’ energy project with
975MW of solar and wind capacity. The project will feed
ArcelorMittal’s Indian steelmaking joint venture, AM/NS India,
supplying over 20 per cent of its electricity requirements and
reducing its annual carbon emissions by approximately 1.5 million
tonnes a year. In Argentina, ArcelorMittal has developed a
partnership with PCR for a 130MW solar and wind capacity project
that supplies over 30 per cent of ArcelorMittal’s local electricity
requirements.
More details on ArcelorMittal’s climate action ambitions,
strategy, technologies and ongoing decarbonisation projects can be
found here.
ENDS
About ArcelorMittal
ArcelorMittal is the world's leading steel
company, with a presence in 60 countries and primary steelmaking
facilities in 16 countries. In 2022, ArcelorMittal had revenues of
$79.8 billion and crude steel production of 59 million metric
tonnes, while iron ore production reached 50.9 million metric
tonnes.
Our purpose is to produce ever smarter steels
that have a positive benefit for people and planet. Steels made
using innovative processes which use less energy, emit
significantly less carbon and reduce costs. Steels that are
cleaner, stronger and reusable. Steels for electric vehicles and
renewable energy infrastructure that will support societies as they
transform through this century. With steel at our core, our
inventive people and an entrepreneurial culture at heart, we will
support the world in making that change. This is what we believe it
takes to be the steel company of the future.
ArcelorMittal is listed on the stock exchanges
of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and
on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS).
For more information about ArcelorMittal please
visit: http://corporate.arcelormittal.com/
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