ArcelorMittal Brazil partners with Casa dos Ventos for 554 MW wind power project in Bahia

ArcelorMittal Brazil partners with Casa dos Ventos for 554 MW wind power project in Bahia

(IN BRIEF) ArcelorMittal Brazil has partnered with renewable energy producer Casa dos Ventos to develop a 554 MW wind power project in Bahia, Brazil. ArcelorMittal will hold a 55% stake in the joint venture, with Casa dos Ventos holding the remaining 45%. The Babilonia project is estimated to provide 38% of ArcelorMittal Brazil’s electricity needs by 2030 and is expected to be operational by 2025. This is the third renewable energy partnership established by ArcelorMittal in the past year as part of its commitment to reducing its carbon footprint.

(PRESS RELEASE) LUXEMBOURG, 18-Apr-2023 — /EuropaWire/ — ArcelorMittal SA (AMS: MT), the world’s leading steel and mining company, has announced that its Brazilian subsidiary, ArcelorMittal Brazil, is teaming up with Casa dos Ventos, a leading renewable energy developer in Brazil, to create a joint venture partnership. The aim of the partnership is to build a 554 MW wind power project in the central region of Bahia, north-east Brazil, which will help to decarbonise a significant proportion of ArcelorMittal Brazil’s electricity needs.

Under the terms of the deal, ArcelorMittal Brazil will hold a 55% stake in the joint venture, while Casa dos Ventos will own the remaining 45%. The Brazilian antitrust authority, CADE, approved the transaction on 13 April, and the deal is set to be completed within the next 15 days.

The project, which will cost around $0.8 billion, is expected to provide 38% of ArcelorMittal Brazil’s total electricity needs by 2030. It will be equity accounted, with ArcelorMittal investing around $0.15 billion.

The Babilonia project, as it is known, will be located close to the national electricity grid, and is expected to have high-capacity load factors of over 50%. The site also has the potential to accommodate up to 100 MW of solar power in addition to the wind turbines. Construction work is due to start later this year, and the project should be operational by 2025.

ArcelorMittal Brazil has also committed to a 20-year power purchase agreement with the joint venture for the supply of electricity.

This project is the third renewable energy partnership established by ArcelorMittal in the past year, following similar deals in India and Argentina. In India, the company is working with the Greenko group to develop a large-scale solar and wind project, while in Argentina, it has partnered with PCR to create a solar and wind facility. These deals are part of ArcelorMittal’s commitment to reducing its carbon footprint and building a more sustainable future.

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.”