Becoming a self-producer of energy without assuming the risks of building its own plant, reducing costs and gaining predictability in energy-intensive operations
Anglo American, one of the world's largest mining companies, sought to reduce costs and gain energy predictability in its operations in Brazil, while also advancing sustainability. To achieve this, it needed a model that went beyond the traditional supply contract: it wanted to become a self-producer, a classification that reduces costs through exemption from sectoral charges.
The problem is that self-production historically required scale and direct investment in proprietary generation — something outside the core business of a mining company. Anglo American needed a partner who would absorb these risks without sacrificing the benefits of the model.
Equity participation in three of the eight SPEs of the Rio do Vento Complex (504 MW), making Anglo American the group's first unit worldwide to become a self-producer
Casa dos Ventos structured an unprecedented model: it assumed the risks of construction and operation of the Rio do Vento Wind Complex and, once operational, offered Anglo American the option to become a partner in the plant — and thus a self-producer. The mining company became a shareholder in three of the eight SPEs that make up the complex.
We developed a new model, where we assume the risks of construction and operation of the project, and once it starts operating, the client can exercise the option to become a partner in the plant and become a self-producer.
States Lucas Araripe, executive director of Casa dos Ventos.
95 MWm for 20 years, 30% of consumption covered, and the first Anglo American group unit in the world to become a self-producer
- 95 MWm contracted;
- 20-year contract, starting in 2022;
- ~30% of plant consumption in Brazil covered;
- First Anglo American group unit in the world to become a self-producer.
- Cost reduction via exemption from sectoral charges, inherent to the self-producer classification;
- Long-term energy predictability for energy-intensive operations in Brazil.
Rio do Vento is a large condominium where various companies benefit from the economies of scale of the venture, a privilege that was restricted to large self-producers and which we have extended to other companies.
Says Lucas Araripe.
