Clean Energy For Mining And Steel Industries In Chile

Atlas Renewable Energy (Atlas) and Grupo CAP, through its subsidiaries Compañía Minera del Pacífico (CMP) and Aguas CAP, have announced the signing of a new 15-year power purchase agreement (PPA). Under this agreement, Atlas will deliver 450 GWh/year of clean energy to Chile’s main mining and steel conglomerates, representing one of the largest renewable energy and storage contracts for both Atlas Renewable Energy and for Chile’s energy sector.

The commercial agreement with Grupo CAP will include the development of a solar project and battery storage system (BESS) in the country’s Atacama region. The BESS will allow the project to continue providing electricity during times when sunlight is scarce or non-existent, such as at night, supplying 100% clean energy 24 hours a day and reducing carbon dioxide (CO₂) emissions into the atmosphere.

This PPA marks a significant step toward Chile’s decarbonization, reducing CO₂ emissions from CMP’s and Aguas CAP’s processes and operations. By using renewable energy, they will be able to carry out production while leaving a smaller environmental footprint, something especially relevant for an industry as important as mining to Chile.

The project’s use of BESS technology is also highly relevant to helping the country move toward a more sustainable, carbon-neutral energy grid by 2050. According to Atlas, BESS systems can mitigate the energy supply inconsistencies that affect the renewable energy sector by guaranteeing efficient, continuous, and reliable energy supply, making them a key component of modern electrical systems.

One of the main trends in Chile’s electricity sector is the use of solar photovoltaic systems alongside BESS solutions. Atlas company is developing three projects to support the PPAs it signed in 2023 and 2024, which will provide 475 MW of solar power and 616 MW of storage. “This new supply agreement highlights Atlas’ continued role as a strategic energy solutions partner for major players across several industries, including Copec – through its energy marketing subsidiary EMOAC – and CODELCO, both of whom have entrusted us to power their operations through long-term contracts,” said Alfredo Solar, Atlas Renewable Energy’s regional manager for Chile and the Southern Cone. “With our latest landmark PPA, we are increasing our installed capacity in Chile by more than 1000 MW through solar and BESS projects.”

“This milestone reaffirms CMP’s leadership as a key player in the transition to a more sustainable mining industry. These agreements not only guarantee a reliable and renewable electricity supply but also reinforce our commitment to operational efficiency and the sustainable development of the communities where we operate. It is a decisive step towards the future we want to continue building for CMP and the regions where we operate,” said Francisco Carvajal, chief executive officer of CMP. “We have reinforced our commitment to the strategy of leading the critical materials for the decarbonization of the CAP Group. In addition, it allows us to continue advancing in the use of world-class technologies and, thus, to continue contributing to the sustainable development of the Atacama region and the country.”

Other Projects

In August, Atlas and ArcelorMittal, a steel producer, forged an agreement for renewable energy supply. As part of this partnership, Atlas will invest in the construction of a 315 MW solar photovoltaic plant within the Luiz Carlos Solar Photovoltaic Complex in Paracatu, Minas Gerais. This new facility will provide renewable energy to power ArcelorMittal’s steel plants in South and Southeastern Brazil.

In November, Atlas entered the data center sector in Latin America through a contract with Sao Paulo-based telecom and data storage provider V.tal. As part of the agreement, Atlas is building the Draco Solar plant in the Brazilian city of Arinos, generating about 1150 GWh of clean energy annually.