Addressing the high energy intensity of steel production with dedicated and scaled renewable energy, while maintaining competitiveness and cost predictability
ArcelorMittal Brazil is the country's leading steel producer and a subsidiary of one of the world's largest mining groups. With public targets to reduce CO₂ emissions by 25% by 2030 and achieve neutrality by 2050, the company needed a partner capable of supplying dedicated, large-scale renewable energy for its operations.
In addition to climate targets, the company's expansion context in Brazil — with the acquisition of CSP (now ArcelorMittal Pecém) and several downstream projects underway — made it even more urgent to ensure that energy growth was sustainable and had cost predictability.
Unprecedented partnership in two ventures: Babilônia Centro Wind Complex (267 MWm) and a new 44 MWm solar joint venture, both in Bahia
Casa dos Ventos structured an unprecedented partnership model with ArcelorMittal: instead of a traditional supply contract, the two companies enabled the construction of the Babilônia Centro Wind Complex as a joint venture in Bahia, with shared governance from construction to operation. The contract was designed to supply 267 MWm of renewable energy dedicated to ArcelorMittal's operations. The complex features 123 wind turbines and 553.5 MW of installed capacity.
The partnership format is also unprecedented and demonstrates our ability to customize solutions.
Says Lucas Araripe.
In August 2024, the partnership advanced with the signing of a new contract for the implementation of a solar project in the same area of the Babilônia Centro Complex, in the municipalities of Morro do Chapéu and Várzea Nova. In this agreement, ArcelorMittal holds 55% of the capital and Casa dos Ventos, 45%.
This model makes sense for consumers with relevant decarbonization goals who understand that the topic of energy will become increasingly strategic.
States Lucas Araripe, executive director of Casa dos Ventos.
In addition to integrating our efforts towards the climate issue, this project also addresses financial and operational aspects. It reduces electricity costs, provides energy security for our businesses in Brazil, and will deliver consistent returns in the long term.
Reiterates Aditya Mittal, CEO of ArcelorMittal.
Two joint ventures, over 310 MWm dedicated, and a benchmark for customized models for electro-intensive industries
- Energy for approximately half of ArcelorMittal's consumption in Brazil supplied by a dedicated renewable source;
- Shared governance model that has become a benchmark for customized structuring for electro-intensive clients;
- Progress towards emission reduction targets of 25% by 2030 and carbon neutrality by 2050.
This project prepares us for the future, ensuring that we can meet our long-term energy needs responsibly, sustainably, and with reduced costs.
States Jefferson De Paula, President of ArcelorMittal Brazil and CEO Long Products and Mining LATAM.
