Brazilian steelmaker Gerdau has announced that it has reached an agreement with domestic energy producer Atiaia Energia to acquire the latter’s subsidiaries Rio do Sangue and Paranatinga Energia, the owners of the Garganta da Jararaca and Paranatinga II hydroelectric power plants, for about BRL 440 million ($73.89 million).
Accordingly, located in Mato Grosso state, both plants have a power generation capacity of 29 MW, with the Garganta da Jararaca plant reported to be generating 21 MW of energy on average and the Paranatinga II plant 17 MW of energy on average.
The acquisition will allow Gerdau to supply renewable energy to its production plants, meeting eight percent of its energy needs and contributing to its decarbonization targets.