ArcelorMittal Form JV In Brazil To Develop 554 MW Wind Power Project

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Global steel conglomerate ArcelorMittal has announced that its Brazilian entity, ArcelorMittal Brazil, is forming a joint venture partnership with Brazilian renewable major Casa dos Ventos 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 and it will now be completed within the next 15 days.

The $800 million wind energy project aims to secure and decarbonise a considerable proportion of ArcelorMittal Brazil’s future electricity needs. It is estimated that 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 $150 million.

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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.”

Jefferson de Paula, President, ArcelorMittal Brazil, stated, “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 wind energy 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%) and a short distance to connect to the national electricity grid.

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There is also the potential to expand the capacity of the project by adding a further 100 MW of solar power. The construction work of the wind power project is 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.

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The Babilonia project is the third strategic renewable energy partnership ArcelorMittal has established in the past year. In March last year, 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. Also, in Argentina, ArcelorMittal has developed a partnership with PCR for a 130MW solar and wind capacity project.