Steelmaker ArcelorMittal has said it has roped in Siemens Gamesa in India and Casa dos Ventos in Brazil to install wind projects for powering its steel factories to reduce carbon emissions in the high-emitting sector by using renewable energy sources.

In the first agreement, ArcelorMittal India partnered with Siemens Gamesa to install wind turbines at its steel facilities.

The wind project will form part of a 989-MW wind-solar hybrid renewable energy project in the Kurnool District of Andhra Pradesh.

ArcelorMittal Nippon Steel will utilize the electricity produced by the Kurnool wind farm  in its plant situated in Gujarat’s Hazira region. By meeting 20% of its electricity requirements from renewable energy sources, the company hopes to reduce its carbon emissions by 1.5 million tons annually.

Siemens Gamesa will begin supplying wind turbines for the project by the second quarter of 2023. The turbines will be produced at the company’s facilities in India.

Wind Energy JV in Brazil

The second partnership sees ArcelorMittal Brazil and Casa dos Ventos, a developer of renewable energy projects in Brazil, join forces to create a joint venture partnership (JV) aimed at building a wind power project with a capacity of 554 MW.

ArcelorMittal Brazil will hold a controlling stake of 55% in the JV, while Casa dos Ventos will hold the remaining 45%.

The wind power project, estimated to cost around $800 million, is projected to generate enough energy to fulfill 38% of ArcelorMittal Brazil’s total electricity requirements by 2030. The JV will be accounted for on an equity basis, with ArcelorMittal Brazil’s equity investment amounting to approximately $150 million.

The steel industry is one of the most energy-intensive industries, and its operations result in significant carbon emissions.

The Government of India recently said it is considering mandating the use of ‘green steel’ in government projects with the goal of decarbonizing one of the most hard-to-abate sectors, Steel Minister Jyotiraditya Scindia told Parliament.

Last year, ArcelorMittal established a strategic partnership with Greenko Group to develop a 975 MW ‘round the clock’ solar and wind energy project in Andhra Pradesh at a cost of $600 million.