Gerdau, Newave Energia break ground on 420-MWp solar project in Brazil

Brazilian steel producer Gerdau SA (BVMF:GGBR4) and local renewable power producer and trader Newave Energia SA have broken ground on a 420-MWp solar park project in Minas Gerais state.

The Arinos Solar Park, as it is named, will require an investment of BRL 1.5 billion (USD 302m/EUR 281m), Gerdau said. Arinos' construction is scheduled to be completed by the end of the year.

Once the solar farm is up and running, 30% of the output will be used to feed Gerdau's steel manufacturing in the country. The asset's full capacity is equivalent to 7% of Gerdau's total energy consumption in Brazil.

Through its unit Gerdau Next SA, the steelmaker owns a 33.33% stake in Newave Energia.

The laying of the foundation stone for the solar park was attended by various government and company officials such as Brazilian President Lula, the Minister of Mines and Energy Alexandre Silveira, Gerdau CEO Gustavo Werneck, and the director of Newave Energia, Claudio Ferreira.

Choose your newsletter by Renewables Now. Join for free!