ArcelorMittal partners with Brazil's Casa dos Ventos for an $800 million wind project

MADRID, 18 Abr.

ArcelorMittal partners with Brazil's Casa dos Ventos for an $800 million wind project

MADRID, 18 Abr. (EUROPA PRESS) -

ArcelorMittal's subsidiary in Brazil has formed a joint venture with the Brazilian renewable energy developer and producer Casa dos Ventos to develop a 554 megawatt (MW) wind power project in the South American country valued at $800 million ( about 731 million euros), the steel group announced on Tuesday.

ArcelorMittal Brasil will have a 55% stake in the joint venture, while Casa dos Ventos will have the remaining 45%. The operation, which was approved by the Brazilian antitrust authority on April 13, will be completed in the next 15 days.

The project aims to guarantee and reduce the carbon emissions of a significant part of ArcelorMittal Brazil's future electricity needs. Specifically, it is estimated that it will provide 38% of the total electricity needs of the Brazilian subsidiary of ArcelorMittal in 2030.

The 'joint venture' will be accounted for by the equity method and ArcelorMittal's total investment in capital will amount to around 150 million dollars (137.1 million euros).

The project, called Babilonia, will be located in the central region of Bahia, northeast of Brazil. The location has been chosen for several competitive advantages, such as the expected high capacity load factors (greater than 50%) and the short distance (23 kilometers) to connect to the national electricity grid, ArcelorMittal explained, specifying that there is the possibility of expanding the capacity of the project by adding another 100 MW of solar energy.

The project is currently in the phase of processing environmental and regulatory permits and construction works are expected to begin at the end of this year and operational commissioning in 2025. ArcelorMittal Brasil will sign a contract with the joint venture purchase and sale of electricity for a duration of 20 years.

Aditya Mittal, CEO of ArcelorMittal, has highlighted that the collaboration with an energy transition operator such as Casa dos Ventos will take advantage of "the favorable Brazilian climate for renewable energy generation" and the company will move "more quickly" towards its climate objectives.

"In addition to making climate sense, this project makes financial and operational sense. It reduces electricity costs and provides energy security for our Brazilian business, as well as offering consistent and attractive long-term profitability." deadline," he added.

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