Shell Brasil Petróleo Ltda and Brazilian steel maker Gerdau have signed a binding agreement for the formation of a joint venture, with equal participation of the two companies in the business, for the development, construction and operation of a new solar park in the State of Minas Gerais, to be built in 2023, after the final investment decision is made. The agreement, which still depends on the approval of the conditions precedent, including the approval of the Brazilian regulatory and competition authorities, establishes the premises for the joint venture's activity in the generation and long-term contracting for the acquisition of clean energy.The park, which should have an installed capacity of approximately 260MWp, will supply 50% of the volume produced to Gerdau's steel production units in Brazil, in the self-production modality, and the other half will be traded on the free market through Shell Energy Brasil, Shell's energy trader. The partnership could enable the development of approximately 1/3 of the total capacity of the solar park.For Gerdau, the initiative is also in line with the company's commitment to reduce its greenhouse gas emissions from scopes 1 and 2 of its inventory, to 0.83 t of CO2e per ton of steel, a value 50% lower than the global average for Gerdau than steel industry. Today, the company has one of the lowest average emissions of greenhouse gases CO2e of 0.93 tonnes of CO2e per tonne of steel, when compared to the global average of the sector, of 1.89 tonne of CO2e per tonne steel
Shell Brasil Petróleo Ltda and Brazilian steel maker Gerdau have signed a binding agreement for the formation of a joint venture, with equal participation of the two companies in the business, for the development, construction and operation of a new solar park in the State of Minas Gerais, to be built in 2023, after the final investment decision is made. The agreement, which still depends on the approval of the conditions precedent, including the approval of the Brazilian regulatory and competition authorities, establishes the premises for the joint venture's activity in the generation and long-term contracting for the acquisition of clean energy.The park, which should have an installed capacity of approximately 260MWp, will supply 50% of the volume produced to Gerdau's steel production units in Brazil, in the self-production modality, and the other half will be traded on the free market through Shell Energy Brasil, Shell's energy trader. The partnership could enable the development of approximately 1/3 of the total capacity of the solar park.For Gerdau, the initiative is also in line with the company's commitment to reduce its greenhouse gas emissions from scopes 1 and 2 of its inventory, to 0.83 t of CO2e per ton of steel, a value 50% lower than the global average for Gerdau than steel industry. Today, the company has one of the lowest average emissions of greenhouse gases CO2e of 0.93 tonnes of CO2e per tonne of steel, when compared to the global average of the sector, of 1.89 tonne of CO2e per tonne steel
