- Shell and Gerdau partner to deploy a solar project in Brazil
- The project will begin construction in 2023 upon the final investment decision.
Oil and gas major Royal Dutch Shell Plc and Brazilian steel producer Gerdau plan to develop a 260MWp solar project in Minas Gerais state. On Monday, the companies announced that they had signed an agreement establishing an equal joint venture to the project.
The project will begin construction in 2023 upon the final investment decision. Once up and running, the facility will supply around 50 per cent of its output to Gerdau’s steel manufacturing units. The rest will be traded on the Brazilian free market through Shell Energy Brasil, but the company continues to seek other long-term off-takers such as carmakers.
This is the second solar development undertaken by Shell and Gerdau in the South American country, following a 190MW direct current project announced last July.