Atlas Renewable Energy signs historic contract with CAP Group to supply 450GWh of renewable energy

This is a machine translation of the original release, issued in Spanish.

PRESS RELEASE from Atlas Renewable Energy
December 19, 2024

Atlas Renewable Energy, an international company dedicated to the generation of renewable energy, together with Grupo CAP, through its subsidiaries Compañía Minera del Pacífico (CMP) and Aguas CAP , announced the signing of its first PPA for the supply of electricity for a period of 15 years. This agreement, which represents the delivery of 450 GWh per year of green energy to the main mining and steel conglomerate in Chile, is one of the largest renewable energy contracts with storage for Atlas Renewable Energy and the energy sector in the country.

The commercial agreement with the CAP Group contemplates the development of a solar project in the Atacama region, with a battery storage system (BESS), which will allow discharges at times when the resource is scarce or non-existent, such as at night, allowing 100% clean energy to be supplied 24 hours a day, reducing the release of CO2 emissions into the atmosphere.

This PPA marks a significant step towards the decarbonization of the country , reducing CO2 emissions in the processes and operations of CMP and Aguas CAP, by being supplied with renewable energy, contributing to achieving production with a smaller environmental footprint, which is especially relevant for an industry as strategic as mining for Chile.

The fact that the project considers BESS technology is also very relevant for the country's process of change towards a more sustainable and carbon-neutral energy matrix by 2050, since battery systems can mitigate energy discharges that affect the renewable sector, becoming a key asset in modern electrical systems, guaranteeing an efficient, continuous and reliable energy supply.

In this context, one of the main trends in the country's electricity sector is precisely the hybrid installation of solar photovoltaic systems with storage, where Atlas Renewable Energy is playing a leading role considering the 475 MW of solar photovoltaic power plus 616 MW of storage that the three Atlas projects that support its PPAs signed between 2023 and 2024 add up to.

“This new supply agreement, which we have concluded as Atlas, continues to support us as a strategic partner in energy solutions for the major players in the industry, who have entrusted us with the energy for their operations with long-term contracts. With this milestone, we are increasing our installed capacity in Chile with more than 1,000 MW based on photovoltaic and BESS energy projects, adding to the contracts recently closed with Copec, through its energy marketing subsidiary EMOAC, and with Codelco,” highlights Alfredo Solar, regional manager of Atlas Renewable Energy for Chile and the Southern Cone .

CMP CEO Francisco Carvajal said: “This milestone reaffirms CMP’s leadership as a key player in the transition towards more sustainable mining. These agreements not only guarantee a reliable and renewable electricity supply, but also reinforce our commitment to operational efficiency and the sustainable development of the communities where we operate. It is a decisive step towards the future that we want to continue building for CMP and the regions where we operate.”

For her part, the Infrastructure Manager of CAP - the division to which Aguas CAP belongs -, Patricia López , said that "we have reinforced our commitment to the strategy of leading the critical materials for the decarbonization of the CAP Group. In addition, it allows us to continue advancing in the use of world-class technologies and, thus, continue contributing to the sustainable development of the Atacama region and the country."

In this “second phase” of the energy transition, Atlas demonstrates its commitment as a 100% clean energy generator, supporting key industries in Chile such as mining in the decarbonization process. Likewise, renewable energy projects and storage systems are consolidated through long-term agreements as the best alternative and one of the pillars of low-carbon development.