Shell, Gerdau plan 260-MWp solar project in Brazil
- Oil and gas major Royal Dutch Shell Plc (AMS: RDSA) has partnered up with Brazilian steel producer Gerdau SA (BVMF: GGBR4) to establish a 260-MWp solar project in Minas Gerais state.
The firms have authorized an arrangement developing a 50/50 joint venture (JV) in connection with the project, the companions introduced on Monday.
Construction work on the brand-new solar park is expected to begin in 2023 in case the final investment decision is made.
As soon as up and running, the facility will supply around 50% of its output to Gerdau's steel producing systems. The remainder will be traded on the Brazilian free market with Shell Energy Brasil, yet the business continues to seek various other long-term off-takers such as carmakers.
This is the second solar growth embarked on by Shell and Gerdau in the South American country, following a 190-MW direct current (DC) project that was introduced last July.
The current arrangement still depends upon the approval of precedent conditions, including securing clearance by neighborhood regulatory authorities as well as competition authorities.