ArcelorMittal, the multinational steel company, and Casa dos Ventos, a renewable energy generator, have announced a joint venture to develop a wind energy park in Bahia, Brazil. The project will have a capacity of 554 megawatts and an investment of US$800 million. This initiative is a significant step towards the decarbonization of ArcelorMittal's electricity consumption in Brazil, as it will be responsible for supplying 38% of the company's total electricity needs by 2030.
The wind energy park will be located in the Babilônia Complex, which is currently under development by Casa dos Ventos. ArcelorMittal will hold a 55% stake in the joint venture, while Casa dos Ventos will have the remaining 45%. The steelmaker will invest US$150 million in the project and will also sign a 20-year power purchase agreement.
Aditya Mittal, the executive president of ArcelorMittal, has highlighted the importance of this venture for the company's expansion in the Brazilian market and its 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,” he said in a statement.
The Babilônia project is currently in the environmental and regulatory licensing phase, and works are expected to start at the end of this year, with an estimated completion date of 2025. The transaction between the companies has already been approved by the Administrative Council for Economic Defense and will be concluded in the next 15 days.
This joint venture between ArcelorMittal and Casa dos Ventos is a remarkable example of the potential for collaboration between different industries to promote sustainable development. By investing in renewable energy, companies can not only contribute to the fight against climate change but also improve their financial and operational performance in the long run.
