Chilean steel producer CAP Acero will build a $4.3 million cogeneration plant in Q1 2016 to help it meet its internal energy demands and diminish electricity costs, according to a media report on Friday.
According to a media report, the cogeneration plant will have two groups of generators with a combined 3.2 MW capacity, and will supply part of CAP’s energy needs by using the exceeding gases the company generates in its processes.
A media report said the decision to build a cogeneration plant was fueled by the high cost of energy, an issue that has been hitting the company’s competitiveness and could even affect CAP Acero’s continuity.
According to the media report, CAP Acero has been negotiating the supply of energy with local utility provider Endesa, which is expected to increase the energy it sells to CAP by 40 percent in 2016.