ArcelorMittal Brasil, leader in steel in the country, announces that it will form a joint venture (JV) with Casa dos Ventos, one of the largest developers and producers of renewable energy projects in Brazil, for the development of a wind energy project of 553.5MW. ArcelorMittal Brasil will have a 55% stake in the JV, with Casa dos Ventos holding the remaining 45%. The transaction was approved by the Administrative Council for Economic Defense - CADE, on April 12 and will be concluded in the next 15 days.

The R$4.2 billion project aims to secure and decarbonize a considerable part of the future electricity needs of the company's operations in Brazil. It is estimated that it will meet 38% of ArcelorMittal's total electricity needs in Brazil in 2030.

Aditya Mittal, CEO of ArcelorMittal, commented on the topic and said: "In addition to integrating our efforts towards the climate issue, this project also addresses the financial and operational aspects. It reduces electricity costs, provides energy security for our businesses in Brazil and will deliver consistent long-term returns. The recent acquisition of CSP immediately increased our presence in the high-growth Brazilian market and provided us with promising future options. As we expand our presence and add value in Brazil, we are conscious of the responsibility that we have in decarbonizing our operations. By becoming partners with a respected energy transition operator, Casa dos Ventos, we have competitive advantages such as the Brazilian climate, favorable for the generation of renewable energy that will allow us to progress more quickly towards our goals climate".

Jefferson De Paula, President of ArcelorMittal Brasil and CEO Aços Longos e Mineração LATAM, added: "In addition to the recent acquisition of CSP, now ArcelorMittal Pecém, we have several downstream organic growth projects underway that expand our presence and enhance our ability to produce products of greater added value. These expansion plans will lead to a natural increase in our energy needs. This project prepares us for the future, ensuring that we can meet our energy needs in the long term in a responsible, sustainable and cost-effective way".

The Babilônia Centro wind complex will be located in Bahia, Northeastern Brazil. The location was chosen due to aspects such as high capacity load factors (more than 50%) and the short distance (23 km) to connect to the national electricity grid. There is also the potential to expand the project's capacity by adding an additional 100 MW of solar energy.

The project is currently in the environmental and regulatory licensing phase, with works expected to start later this year and operational commissioning in 2025. ArcelorMittal Brasil will sign a 20-year power purchase agreement with the JV for the supply of electricity.

The Babilônia project is the third strategic renewable energy partnership established by ArcelorMittal in the last year. In March 2022, the Company announced a partnership with the Greenko group in India to develop a 'continuous' power project with 975MW of solar and wind capacity. The project will power ArcelorMittal's Indian steel joint venture, AM/NS India, providing more than 20% of its electricity needs and reducing annual carbon emissions by approximately 1.5 million tonnes per year. In Argentina, ArcelorMittal has partnered with PCR for a 130MW solar and wind capacity project that meets more than 30% of ArcelorMittal's local energy needs.

About ArcelorMittal

Largest steel producer in Brazil and leader in the global market, the ArcelorMittal Group has around 158,000 employees, 16,000 of which in Brazil and serves customers in 155 countries, with the aim of creating intelligent steel for people and the planet.

The company has industrial units in seven states (CE, ES, MG, MS, RJ, SC and SP), in addition to distribution and service units throughout the country, being the only one in the sector in Brazil to have ResponsibleSteel certification.

The Brazilian plants have an annual production capacity of 7 million tons of iron ore and 15.5 million tons of crude steel, with applications in the automobile, household appliances, civil construction and naval industries, among others. The company also operates in diversified areas such as energy generation for its own consumption, production of renewable bio-reducer (charcoal from renewable eucalyptus forests) and information technology.

About the House of Winds

Casa dos Ventos is a Brazilian energy company that develops, builds and operates energy generation projects from renewable sources. Responsible for the largest wind measurement campaign ever undertaken in the world, the company developed one in every four of the wind projects in operation in Brazil. To advance in its position as a strategic player in the sector, Casa dos Ventos has the largest portfolio of wind and solar projects in the country, with approximately 20 GW of capacity. The company is also a leader in offering customized solutions to support the energy transition of large consumers. Recently, Casa dos Ventos announced a joint venture with TotalEnergies to jointly develop, build and operate the renewable portfolio in Brazil, including hydrogen and green ammonia projects.

Casa dos Ventos is a signatory of the UN Global Compact and works in line with the 17 Sustainable Development Goals (SDGs) and best ESG practices, preserving local biomes, developing social projects in the communities where it is present and contributing to a low carbon economy.