Steel giant takes majority stake in 554MW Brazilian project

ArcelorMittal Brazil will hold a 55% stake in the joint venture, while Total-Energies backed Casa dos Ventos will hold the remaining 45%.

The project’s estimated cost is $800m, including an equity investment of $150m from ArcelorMittal.

ArcelorMittal will use the wind farm to help decarbonise its expanding steel operations in Brazil. It has already signed a 20-year power purchase agreement (PPA) with the joint venture, and it estimated the farm will cover nearly 40% of its power needs in Brazil in 2030.

“As well as making climate sense, this project makes financial and operational sense,” said Aditya Mitta, CEO of ArcelorMittal. “It reduces electricity costs and provides energy security to our Brazilian business and will deliver consistent, attractive long-term returns.”

The transaction has been approved by the Brazilian antitrust authority and will be completed within the next 15 days, the company said.

Casa dos Ventos was already developing the project. Earlier this year it awarded Vestas a deal to supply the farm with 123 of its V150-4.5MW turbines, and to service the farm for 25 years. The project is currently going through permitting. Construction is due to start later this year, and commissioning is targeted for 2025.

The Babilonia project will be located in the central region of Bahia, in north-east Brazil. The location is expected to provide load factors of over 50%, and there is only a 23km distance to connect to the national electricity network. There is also the potential to add 100MW of solar capacity at the site, ArcelorMittal said.