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Atlas Renewable Energy Just Signed The Largest Solar Energy Contract In Latin America In Partnership With Albras, The Largest Primary Aluminum Producer In The Country.
Atlas Renewable Energy, a leader in clean energy generation, has just closed a deal with Albras, the largest primary aluminum producer in Brazil. With a contract in U.S. dollars, Atlas will supply solar energy to Albras for 21 years, the largest Power Purchase Agreement (PPA) ever signed in Latin America.
Atlas Renewable Energy’s Contract Will Last 21 Years
The solar energy will come from the Vista Alegre photovoltaic project, located in Minas Gerais, and is expected to be operational by 2025. The unit has a capacity of 902 MWp, equivalent to 768 MWac of installed capacity, and it is estimated that the energy supplied will be approximately 2 terawatt-hours per year.
According to the companies, this is the largest private agreement in Latin America aimed at a single customer, and the longest as well, lasting 21 years. In energy terms, the electricity that can be generated by the solar power plant is equivalent to the reduction in the emission of approximately 61,800 jobs.
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According to Luís Pita, director of Atlas Renewable Energy in Brazil, and Evaldo Batista, commercial director of Metal and Energy at Albras, this self-production contract model not only generates competitiveness and predictability for energy management but is also strengthening as an alternative to provide renewable energy for companies. Pita emphasizes that this contract model is consolidating as one of the major solutions for energy supply to companies, with advantages in terms of economy and ESG guidelines.
Atlas Is Expected To Finance Around US$ 500 Million
The executive states that Atlas is expected to finance approximately US$ 500 million, possibly through a project finance operation, a financial structuring modality that allows large-scale projects to be built, where the cash flow generated by its own activity is the main source of revenue for repaying the debt service of its financing and the resulting service or product.
This contract, which is the largest in Latin America, is not the first partnership between Atlas Renewable Energy and Albras, since the first contract was for the Boa Sorte solar power plant project in Minas Gerais, which has 438 MW and is expected to provide 815 GWh annually also exclusively for Albras.
It is worth noting that Atlas recently raised US$ 210 million from BNDES for the installation of the plant for the first project indexed to the dollar granted by the bank.
Batista states that one of the strategic drivers of the company is the production of green aluminum, which has been in high demand in the current context. The largest contract in Latin America is also linked to decarbonization goals, although the targets are not public.
Albras Will Have Supply Over 30%
Batista further emphasizes that with the new solar power plant, the company will have a supply greater than 30% of its energy demand, stating that the company also has a contract with Eletronorte for energy supplied by the Tucuruí hydroelectric power plant (8.3 GW).
In this self-production business model, Albras will have an equity stake in the plant.
At the Boa Sorte plant, 33% of the project belongs to Albras and Hydro Rein. The advantage is the guarantee of supply and pre-defined price conditions. For Atlas Renewable Energy, the benefit is a huge customer that also takes on the risks of a new project. This model has attracted the attention of companies from various sectors, and even Casa dos Ventos has closed a contract with Mosaic and Anglo American.
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