ArcelorMittal Entered Into Renewable Energy Joint Venture Project in Brazil

SEATTLE (Scrap Monster): ArcelorMittal Brazil- the Brazilian subsidiary of steel giant ArcelorMittal announced that it has formed a joint venture partnership with leading Brazilian developer and producer of renewable energy projects, Casa dos Ventos. The partnership will construct a 554MW wind power project in the country. The transaction has already received the approval of Brazilian antitrust authority and is expected to be completed within two weeks’ time.

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According to company press release, ArcelorMittal Brazil will hold majority 55% stake in the joint venture with Casa dos Ventos holding the remaining 45%. The c. $0.8 billion project is expected to secure and decarbonise a considerable proportion of ArcelorMittal Brazil’s future electricity needs, providing up to 38% of total electricity needs of ArcelorMittal Brazil by 2030.

Commenting on the development, Aditya Mittal, CEO, ArcelotMittal said that the new joint venture project makes financial and operational sense. It will not only reduce electricity costs and provide energy security to its Brazilian business, but also deliver consistent and attractive long-term returns for the company in future. Furthermore, it will help the company make faster progress towards its climate targets, he noted.