Brazil's largest steel producer Gerdau has partnered with the Brazilian energy investment group Newave Capital to invest in a joint venture, named Newave Energia, which will develop solar and wind projects totalling 2.5 GW of capacity in Brazil.
Through its unit Gerdau Next, the steelmaker will acquire a 33.33% stake in Newave Energia and will secure the long-term supply of 30% of the power produced by the latter's projects on a self-production basis. Gerdau will invest up to BRL1.5bn (US$290m) worth of stock in Newave Energia, while Newave capital is expected to invest a total of BRL3bn (US$580m) in exchange for a 66.67% interest in Newave Energia.
The planned solar and wind projects, whose details have not yet been revealed, are expected to start generating power in 2025 and 2026.