Steel giant ArcelorMittal builds $800m wind farm as Brazil power needs balloon
Metals group forms JV with Casa dos Ventos for 554MW Babilonia in Bahia that will be equipped by Vestas
Global steel giant ArcelorMittal will build one of Brazil’s largest single wind farms to meet a more than a third of its power needs in the South American nation.
ArcelorMittal Brazil said it will form a joint venture with Brazilian renewables developer Casa dos Ventos for the $800m, 554MW Babilonia project in the wind-rich state of Bahia.
The site was chosen for potential capacity factors above 50% and convenient access to the national grid, said ArcelorMittal, which will hold a 55% stake in the JV with the remainder owned by Casa dos Ventos.
The partners expect to complete the project in 2025 when ArcelorMittal Brazil will sign a 20-year offtake deal for the output, which will cover around 38% of its total needs by 2030. There is scope to add an additional 100MW of solar capacity.
ArcelorMittal said the onshore wind will help meet demand from its expanding operations in Brazil – the company has just completed a $2.2bn takeover of CSP, a Brazilian slab steel producer.
ArcelorMittal Brazil president Jefferson de Paula said: “In addition to the recent acquisition of CSP, we have several downstream organic growth projects underway that expand out footprint and enhance our ability to produce higher added value products. These expansion plans will lead to a natural increase in our energy requirements.”
The steel-maker has engaged in a range of collaborations with renewables project developers globally in an effort to add green power supplies in what is considered to be among the hardest energy-intensive industries to decarbonise.