The US$500 million project contemplates the construction of a photovoltaic plant, including 17 sub-parks, which includes the implementation of an elevator substation, transmission line and connection bay, with contracts signed for connection to the Brazilian National Interconnected System. Vale said that due to its location and scope, the project was eligible for sustainable financing lines.
The plant is due to commence operations by the fourth quarter of 2022 and produce about 193MW per year, about 13% of Vale's estimated demand in 2025.
In addition to helping achieve Vale's sustainability goals, the company said it would also reduce its annual electricity costs by about $70 million.
The project is expected to allow the reduction of Vale's scope 2 emissions by up to 136,407tCO2e/year as it pursues a medium- and long-term goal of a 33%-reduction in its scope 1 and 2 emissions by 2030, in line with the Paris Agreement, and for carbon neutrality by 2050. Vale has a $2 billion investment plan to reduce carbon emissions.