Brazilian flats steelmaker has signed a Power Purchase Agreement (PPA) with Canadian Solar for electricity to run its mills, the steelmaker said.
Canadian Solar will invest BRL 1.35 billion ($262.9 million) to build a solar power plant in the Brazilian city of Luziânia, Goiás state. Under the terms of the PPA agreement, Usiminas will receive 30 megawatts, on average, in a 15-year period, effectively from 2025. The amount of energy can meet about 12 percent of Usiminas’ total demand for electricity, the flats producer said.
The construction of the solar power plant is expected for Q1 2024. It will commence operations by January 2025.
Usiminas said this PPA agreement was the first of its kind that was directly signed between Canadian Solar and an industrial client under a “self-production” model in Brazil.