Solar-Powered Steel
Atlas Renewable Energy (Atlas), an international producer of renewable energy, and ArcelorMittal, a steel producer, have 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.
The contract establishes a joint venture between Atlas Renewable Energy and ArcelorMittal to construct a major portion of the Luiz Carlos Solar Photovoltaic Complex. Once the solar plant becomes operational, ArcelorMittal will acquire Atlas’ entire shareholding, taking complete ownership of the project.
This model provides ArcelorMittal with access to a large-scale solar project in southeastern Brazil, where solar radiation is abundant. The project benefits from a contract that ensures connection to the electricity grid, guaranteeing a long-term supply of renewable, cost-effective energy for producing green steel. With an installed capacity of 315 MW, the project will generate 578 GWh annually—enough to power over 300,000 Brazilian homes and prevent 20,000 tons of carbon dioxide (CO2) emissions each year.
“This contract solidifies Atlas’ role as a key partner in the manufacturing sector, particularly within the steel industry, by supporting its transition to cleaner energy and advancing sustainability goals,” said Fabio Bortoluzo, country manager for Atlas Renewable Energy in Brazil. “Our PPA [purchasing power agreement] model showcases our flexibility in meeting customer needs, driving innovation in the market, and delivering tangible benefits. We are excited to collaborate with ArcelorMittal, reaffirming our commitment to expanding renewable energy and enhancing sustainable energy supply to manufacturing plants across the country.”
“The investments in renewable energy are in line with ArcelorMittal’s efforts to increase energy self-sufficiency and reinforce the strategic importance of Minas Gerais for the company’s business, contributing to job creation and economic development in the state,” said Jefferson De Paula, president of ArcelorMittal Brazil and chief executive officer of ArcelorMittal Long Carbon and Mining Latin America. “The initiative is unprecedented in the Brazilian operation, in a project of this size, and with a partner that is also a leader in its segment. It is yet another action aimed at neutralizing CO2 emissions in the steel industry and contributing to the goal of becoming carbon neutral by 2050.”
Details Of The Luiz Carlos Solar Photovoltaic Complex
The solar complex will have an installed capacity of 787 MW, with 315 MW allocated to supply ArcelorMittal, while the rest of the complex is governed by a PPA signed with another Brazilian construction company. Atlas secured a US$270 million financing coordinated by Itaú BBA for the construction of the Luiz Carlos Photovoltaic Complex, of which, US$136 million came from incentivized debentures under the Brazilian Law 12.431/2011, and certified as “Green Debentures” by Sustainable Fitch. US$131 million was obtained through commercial notes.
The construction of Luiz Carlos began in 2024. Atlas said that it will continue implementing social and environmental programs including the We Are Part of the Same Energy program. According to the company, the program has already provided training to more than 1500 women across Brazil, Mexico and Chile, empowering them with the skills to work in the construction of solar plants.
Atlas will also implement its award-winning Ed-Mundo program, designed to train young students from underrepresented communities in computer programming, information technology, robotics, and entrepreneurship. This program not only provides students with valuable skills but also empowers them to lead social change by creating job opportunities and generating additional income for their families and communities.
In the Paracatu region, Atlas developed, built and now operates the Boa Sorte solar project, which began operations in 2024 with 438 MW of installed capacity. These initiatives are part of the company’s broader strategy to promote environmental and social development in the region, with a focus on hiring local workers.
The execution of the agreement is still contingent on the conditions that govern this type of operation, including approval by Brazil’s Administrative Council for Economic Defense.
