Luxembourg-based steelmaker ArcelorMittal has announced that its subsidiary ArcelorMittal Brazil will establish a joint venture partnership with Brazilian renewable energy company Casa dos Ventos to develop a 554 MW wind power project, named the Babilonia project.
ArcelorMittal Brazil will hold a 55 percent stake in the joint venture, with Casa dos Ventos holding the remaining 45 percent. ArcelorMittal Brazil will enter a 20-year power purchase agreement with the joint venture for the supply of electricity. It is estimated the joint venture will provide 38 percent of the company’s total electricity needs in 2030.
The Babilonia project will be located in Bahia in northeast Brazil. There is also the potential to expand the capacity of the project by adding a further 100 MW of solar power.
Construction work is anticipated to start later this year and operational commissioning in 2025.