Vale completes Brazilian renewables acquisition

Brazil

RIO DE JANEIRO, March 28, 2024 – Brazilian mining giant Vale has taken full ownership of renewable energy company Aliança Energia after agreeing to buy the 45% stake held by Cemig GT for USD 541 million, Vale announced on Wednesday.

The deal gives Vale 100% ownership of Aliança Energia, which it founded in 2015 jointly with Brazilian power company Companhia Energética de Minas Gerais (Cemig). The decision was taken in the context of Cemig GT’s divestment plan, made public in 2020.

Aliança Energia’s power generation portfolio consists of seven hydroelectric plants in the state of Minas Gerais and three wind farms in the states of Rio Grande do Norte and Ceará. Together, the assets have 1,438 MW in installed capacity. Vale currently uses most of the energy generated by Aliança Energia.

The acquisition furthers Vale’s plans to create an energy platform and maintain an energy matrix based on renewable sources in Brazil. To this end, in addition to potentially integrating other energy assets from its own portfolio, the company said it would search for partners to decarbonize its operations using renewable sources at competitive costs.

Photo courtesy of Aliança Energia

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