Brazilian steelmaker Gerdau and compatriot renewables developer Newave Energia have formed an alliance to develop a 2.5GW portfolio of solar and wind energy projects.
Under the deal, subsidiary Gerdau will take a third of the shares in Newave Energia in exchange for BRL 1.5 billion ($285 million) to be paid in two stages, while Newave’s controlling shareholder NW Capital will invest BRL 3.0 billion.
In addition, Gerdau will purchase 30% of the electricity generated by the renewable projects, helping the company to reduce the environmental impact and operating costs of its steel business. The solar and wind projects are expected to begin operating in 2025 and 2026.
Newave Energia was founded by Edgard Corrochano who previously led turbine maker Gamesa’s Brazilian business and founded renewables firm Echoenergia, which was sold to Equatorial Energia last year for BRL 6.7 billion.