Canada headquartered solar cell and module maker from China, Canadian Solar Inc has identified Latin American steel producer Usinas Siderurgicas de Minas Gerais (Usiminas) as the offtaker of 50% electricity generation from its 381 MW Morada do Sol Project in Brazil.
Canadian Solar says this is the 1st corporate power purchase agreement (PPA) signed directly with an industrial customer under Brazil's self-production framework. Canadian Solar has signed a power purchase agreement (PPA) with the company through its Global Energy Business Group.
Listed on the New York Stock Exchange (NYSE), Usiminas is one of the largest steelmakers in Latin America. Usiminas says the solar power offtake agreement is aligned with its ESG goals to ensure sustainability of its operations.
Construction on site is scheduled to commence in the State of Goiás in Q1/2024 and commercial operations to begin by January 2025. On commissioning it is expected to generate around 790 GWh of clean energy annually with Canadian Solar's high efficiency bifacial BiHiKu modules.
Canadian Solar's Chairman and CEO Dr. Shawn Qu said this transaction strengthens its position in the Brazilian market where the company has cumulatively developed over 4.1 GW of projects.
Recently, another steel producer in Brazil, Gerdau announced plans to set up a joint venture to construct a 260 MW solar power plant with Shell Brasil with a view to produce green steel (see Latin America PV News Snippets).