Gerdau, one of the world’s largest steel producers, is making a bold move into the renewable energy sector. Over the past 12 months, the company has invested R$3 billion in clean energy initiatives, building solar parks, acquiring hydroelectric plants, and expanding its footprint in the sustainable energy market. Its ambitious goal? To source 80% of its energy from renewables by 2031, according to Neofeed.
As Brazil’s fifth-largest energy consumer, with an annual demand of 6 MW, Gerdau is prioritizing self-production to cut costs and advance its decarbonization strategy. The company has already inaugurated two solar parks and acquired small hydroelectric plants (PCHs). The newly launched Arinos Solar Park in Minas Gerais has a generation capacity of 420 MWp, covering 7% of Gerdau’s annual consumption. Meanwhile, the acquisition of two PCHs in Mato Grosso for R$440 million will supply 8% of the company’s energy needs in Brazil.
According to Flávia Souza, Gerdau’s global energy and supply director, the company’s self-produced clean energy is 30% cheaper than conventional sources, significantly boosting competitiveness. “Our process is highly energy-intensive, so this is a strategic move that benefits both our finances and long-term sustainability,” she explains.
Gerdau isn’t stopping here. Plans for new hydroelectric and wind energy investments are already in place for 2025, alongside ongoing acquisitions of renewable assets. “We want to diversify our energy matrix and ensure we own the energy, rather than relying on third-party contracts,” Souza adds.
At the same time, Gerdau is strengthening its position in Newave Energia, a joint venture focused on renewable power. The company has increased its stake from 33.3% to 40%, gaining more influence over projects like the Barro Alto Solar Park in Goiás, set to begin operations in 2025 with a capacity of 452 MWp.
Beyond powering its own operations, Gerdau plans to sell surplus energy on the open market, including to industry competitors. “Gerdau Next is entering the energy sales sector, but we have no intention of competing directly with giants like Enel or Engie,” Souza clarifies.
With its aggressive push into renewables, Gerdau is not only securing a sustainable future for its operations but also reshaping Brazil’s industrial energy landscape.