Atlas Renewable Energy and ArcelorMittal Partner to Build Solar Plant in Brazil

Atlas Renewable Energy and ArcelorMittal have announced a joint venture to construct a new solar power plant in Minas Gerais, Brazil. This project aims to provide clean, renewable energy to support ArcelorMittal’s steel production facilities in Southern and Southeastern Brazil.

Located in the city of Paracatu, the solar plant will have an installed capacity of 264.6 megawatts alternating current (MWac). It will also include an associated energy transmission system, further enhancing the plant's ability to support the region's power needs. The solar plant is part of the Luiz Carlos solar complex, which is already under construction by Atlas Renewable Energy, a company backed by Global Infrastructure Partners.

Key Details of the Solar Plant

The solar plant is expected to begin commercial operations by the end of 2025. Upon completion, ArcelorMittal will acquire Atlas Renewable Energy's entire stake in the project, gaining full ownership of the solar park. This move aligns with ArcelorMittal's broader strategy to reduce carbon emissions in its steel production processes and work towards becoming carbon-neutral by 2050.

"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 Jefferson De Paula, head of ArcelorMittal Brasil.

Investment and Impact

The Luiz Carlos solar complex represents a significant investment in Brazil's renewable energy sector, with Atlas committing 2.32 billion reais (approximately $424.43 million) to the project. The solar complex, once fully operational, will have a total installed capacity of 787 megawatts peak (MWp). In addition to supplying power to ArcelorMittal, the complex will also provide renewable energy to other industrial clients, including Votorantim Cimentos, a leading cement manufacturer.

Regulatory Approvals Pending

The completion of the joint venture agreement is still subject to approval from local regulators, but both companies are optimistic about the positive impact this project will have on Brazil's energy landscape and the global push towards more sustainable industrial practices.

By investing in renewable energy sources such as this solar plant, both Atlas Renewable Energy and ArcelorMittal are taking significant steps to meet environmental goals and reduce carbon footprints, reflecting a growing trend in the industry towards sustainability and cleaner energy production.