ArcelorMittal and Casa dos Ventos will invest in wind power in Bahia, Brazil

The steel company ArcelorMittal and the renewable energy generator Casa dos Ventos announced on Tuesday the creation of a joint venture for a wind energy park in Bahia, with a capacity of 554 megawatts (MW) and total investments of US$800 million.

Located in the Babilônia Complex, under development by Casa dos Ventos, the project will be responsible for supplying 38% of ArcelorMittal’s total electricity needs in Brazil in 2030, which represents an important advance in the decarbonization of the company’s electricity consumption in the country.

ArcelorMittal will have a 55% stake in the JV, and Casa dos Ventos will have the remaining 45%. ArcelorMittal’s total capital investment will be US$150 million.

Also as part of the agreement, the steelmaker will sign a 20-year power purchase agreement for the project.

The executive president of ArcelorMittal, Aditya Mittal, affirmed that the venture occurs at a time of expansion of the company in the Brazilian market, with the acquisition of Companhia Siderúrgica do Pecém (CSP), and the search for compliance with sustainability goals.

“In addition to making climate sense, this project makes financial and operational sense. It reduces electricity costs and provides energy security for our Brazilian businesses and will provide attractive and consistent returns in the long term,” the executive said in a note. .

The Babilônia project is currently in the environmental and regulatory licensing phase, and works are expected to start at the end of this year and come online in 2025.

The transaction between the companies has already been approved by the Administrative Council for Economic Defense (Cade) and will be concluded in the next 15 days.