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The global mining company of iron ore, copper, and nickel, Vale, announced the Sol do Cerrado project for solar energy generation in the municipality of Jaíba, Minas Gerais.
The solar energy project in Minas Gerais is an important contribution to Vale’s leadership in transitioning to carbon-neutral mining, generating renewable and competitive energy for Vale and its affiliates’ operations. The project includes the construction of a photovoltaic plant, comprising 17 sub-parks that total an installed capacity of 766 megawatts peak (MWp).
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Vale’s project in Minas Gerais includes the implementation of a booster substation, transmission line, and connection bay at the SE Jaíba 230 kV, with contracts signed for connection to the Brazilian National Interconnected System.
With investments on the order of R$ 500 million for its implementation, due to its location and scope, the solar energy project is eligible for sustainable financing lines. “The investment is a strategic alternative that, besides helping to achieve sustainability and competitiveness goals, will provide a reduction of approximately R$ 70 million per year in electricity costs.” – states the CEO in an interview.
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Vale Project in Minas Gerais Scheduled for Delivery in 2022
Vale’s solar energy project that begins in Minas Gerais, with operations starting in the fourth quarter of 2022, will produce approximately 193 average megawatts (MWa) of energy per year for Vale’s operations, corresponding to 13% of Vale’s estimated demand in 2025.
Solar generation, located in the Southeast region, also optimizes the generation profile of Vale’s portfolio, which is based on hydropower generation. The project was approved by Vale’s Board of Directors and is subject to the usual closing conditions, including approval from the National Electric Energy Agency (ANEEL).
The consumption of 100% renewable solar energy is expected to allow a reduction of Vale’s scope 2 emissions by up to 136,407 tCO2e/year, from the start of operations of Sol do Cerrado, an important contribution to medium and long-term sustainability goals, particularly the goal of reducing Vale’s scope 1 and 2 emissions by 33% by 2030, in line with the Paris Agreement; and achieving carbon neutrality by 2050.
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