Steel producer ArcelorMittal has formed a joint venture (JV) with renewable energy developer Casa dos Ventos to develop a 554MW wind farm in Brazil through its Brazilian subsidiary, ArcelorMittal Brazil.
ArcelorMittal Brazil will own a 55% stake in the JV while the remaining 45% interest will be held by Casa dos Ventos.
Go deeper with GlobalData
The JV recently secured approval from the Brazilian anti-trust authority, the Conselho Administrativo de Defesa Econômica (Administrative Council for Economic Defence).
The wind farm, named the Babilonia project, is being developed with an estimated investment of $800m and will be located in the central region of Bahia, in the north-east of the country.
The two companies state that this region offers advantages including high-capacity forecast load factors, and that it allows easy connection to the national electricity grid due to the short distance involved.
The Babilonia wind farm is currently seeking environmental and regulatory permissions and construction is expected to begin later in 2023. It is anticipated that operations will begin in 2025.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataArcelorMittal Brazil will then reach a 20-year power purchase agreement for all the electricity generated from the wind farm.
The project is expected to provide 38% of the company’s total electricity requirements in 2030.
ArcelorMittal CEO Aditya Mittal said: “The recent acquisition of CSP [Companhia Siderúrgica do Pecém] 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.”
