Brazilian integrated steelmaker Gerdau and oil producer Shell have signed a binding agreement to create a 50/50 joint venture (JV) to develop, build and operate a new solar power plant in Minas Gerais state, Gerdau said this week.
Gerdau said the project will be built in 2023. The plant will produce 260 Megawatts-peak (MWp) of electricity, 50 percent of which to supply the energy needs of Gerdau to produce steel in Brazil. The other 50 percent electricity volume will be sold in the domestic spot market by Shell Energy Brasil, a subsidiary of Shell.
Gerdau said the investment to build the plant is yet to be determined, and the agreement depends on certain preceding conditions, including regulatory approval.
Gerdau said the agreement will help it reduce CO2 emissions.