Mining giant Vale to invest US$500mn in Brazil solar project

Brazilian mining company Vale said it will invest US$500mn in a solar power project.

The Sol do Cerrado project is part of Vale’s plan to invest up to US$ 2bn to reduce carbon emissions in the coming years with the aim of becoming carbon neutral. 

Sol do Cerrado will be located in the municipality of Jaíba in Minas Gerais state. 

"The project contemplates the construction of a photovoltaic plant, including 17 sub-parks, that will have total installed capacity of 766 megawatts peak (MWp),” Vale said in a press release. “It also includes the implementation of an elevator substation, transmission line and connection bay at the 230kV Jaíba substation, with contracts signed for connection to the Brazilian national interconnected system," it added. 

The company expects the use of solar power to reduce its annual electricity costs by approximately US$70mn.

The operational start-up of Sol do Cerrado is scheduled for the fourth quarter of 2022 and it will produce around 193 average megawatts annually for Vale's operations, corresponding to 13% of the company’s estimated demand in 2025. 

OTHER INITIATIVES

Vale’s solar project is part of a trend where Brazilian companies in several sectors are turning to renewable energy as a way to reduce carbon emissions. 

In November, cement producer Votorantim Cimentos took a major step towards carbon neutrality when unveiling its sustainability commitments for 2030, which included a new 10-year target for reducing CO2 emissions in order to achieve carbon neutrality by 2050.

The company's target is to reduce CO2 emissions per ton of cement to 520kg by 2030. In the 1990-2019 period, Votorantim said it achieved a 23% reduction to 591kg.

To reach the new target, Votorantim will replace fossil fuels used in cement production ovens with biomass and solid waste, while also seeking to secure 45% of its electric power supply from renewable energy sources.