Casa dos Ventos, a Brazilian renewable energy company, and ArcelorMittal Brasil, a leader in steel production in Brazil and a subsidiary of one of the world's largest mining groups, celebrate a historic partnership for the Brazilian energy sector. The agreement provides for an investment of R$ 4.2 billion to jointly build the Babilônia Centro Wind Complex, located in Bahia. The project will be dedicated to providing renewable energy to ArcelorMittal's operations under a 267 MW contract, equivalent to enough to meet the needs of 1.1 ** million households in Brazil.
The Babilônia Centro Wind Complex will have 553.5 MW of installed capacity, from 123 wind turbines, and will become one of the largest wind power projects in Brazil. The steel sector is considered electro-intensive, and with the Babilônia Centro Wind Complex, ArcelorMittal will take a leadership role in decarbonizing steel production. The company's goal is to reduce CO2 emissions by 25% by 2030 and achieve neutrality by 2050. The partnership with Casa dos Ventos is also an important step towards achieving this goal and will bring significant environmental benefits. The renewable energy from Babilônia Centro will meet approximately half of ArcelorMittal's energy needs and avoid the annual emission of over 208,000 tons of CO2 into the atmosphere*, equivalent to 9,210,568 trees planted.
The partnership, in addition to contributing to the energy transition of an important sector such as steel, was structured so that the consumer has management and assumes the protagonism of their energy supply. This model makes sense for consumers with relevant decarbonization goals and for whom the energy issue will become increasingly strategic
highlights Lucas Araripe, executive director of Casa dos Ventos.
The two companies are making the construction of Babilônia Centro viable in a partnership, through a governance where decisions are shared at all stages of the project, from construction to operation. "The partnership format is also something new and demonstrates our ability to customize solutions," Araripe concludes.
Aditya Mittal, CEO of ArcelorMittal, commented on the topic and said: "In addition to integrating our efforts in the direction of the climate issue, this project also meets financial and operational aspects. It reduces electricity costs, provides energy security for our businesses in Brazil, and will provide consistent returns in the long term. The recent acquisition of CSP immediately increased our presence in the Brazilian market, which is a high-growth market, and brought us promising future options. As we expand our presence and add value in Brazil, we are aware of the responsibility we have to decarbonize our operations. By becoming partners with a respected energy transition operator, Casa dos Ventos, we have competitive advantages such as the Brazilian climate, favorable for renewable energy generation, which will allow us to progress more quickly towards our climate goals".
Jefferson De Paula, President of ArcelorMittal Brasil and CEO of Aços Longos and Mineração LATAM, added: "In addition to the recent acquisition of CSP, now ArcelorMittal Pecém, we have several downstream organic growth projects underway that expand our presence and improve our capacity to produce higher-value-added products. These expansion plans will lead to a natural increase in our energy needs. This project prepares us for the future, ensuring that we can meet our energy needs in the long term in a responsible, sustainable, and cost-reducing way".
The agreement also provides for the possibility of making the Babilônia Sul Wind Complex hybrid in the future, adding solar generation and expanding the availability of renewable energy. The transaction was approved by the Administrative Council for Economic Defense (CADE) on April 12 and is in the final completion process.
Source: *considering the average of the last 3 years (2020, 2021, and 2022) of the Annual Average Factor (tCO2/MWh) of the Ministry of Science, Technology, and Innovation of Brazil. **taking into account the calculation of ANEEL of 168 kWh for the average monthly consumption of Brazilian households.
