Chilean steelmaker CAP Acero, which is part of mining company CAP Mineria, has received approval from a local environmental authority to develop a gas-based power plant to supply its steel mill, according to a media report.
The project will use residual gases generated at the company’s steel plant to produce electricity. CAP Acero said it will invest USD 4.3 million in the initiative; construction is expected to commence in the end of January, according to a company’s filing at the nation’s environment evaluation system, SEA.
The power plant is expected to start operations in January 2017, the company noted in the filing. The project will be located in the region of Biobio, in the province of Concepcion, Chile.