SAO PAULO – Atlas Renewables Energy and ArcelorMittal (NYSE: MT) will form a joint venture to build a solar plant in Brazil’s Minas Gerais state, they said on Wednesday, aiming to supply power to the steelmaker’s operations in Southern and Southeastern Brazil.
The joint project in the city of Paracatu will have an installed capacity of 264.6 megawatts of alternating current (MWac) and an associated energy transmission system, according to a statement.
It will be located within the Luiz Carlos solar complex, already being built by Atlas, a company backed by investment fund Global Infrastructure Partners.
The plant is expected to start commercial operation at the end of 2025. Once it is up and running, the agreement stipulates that ArcelorMittal (NYSE: MT) will buy Atlas’ entire stake in the project, leaving it with 100% of the solar park.
“This is yet another action aimed at neutralizing CO2 emissions in the steel industry and contributing to the goal of becoming carbon-neutral by 2050,” said ArcelorMittal Brasil head Jefferson De Paula.
The completion of the joint venture agreement still requires approval from local regulators, the companies noted.
Atlas is investing 2.32 billion reais ($424.43 million) in the Luiz Carlos solar complex.
The project has a 787 megawatts peak (MWp) of installed capacity. In addition to ArcelorMittal, it will also supply renewable energy to cement maker Votorantim Cimentos.
($1 = 5.4661 reais)
(Source: ReutersReuters)
ArcelorMittal Atlas Renewables Energy NYSE: MT
