Vale SA (VALE:US), the world’s biggest iron- ore producer, will invest 650 million reais ($315 million) in two wind farms that Pacific Hydro Pty. will develop in Brazil to meet its growing energy needs.
Vale and Melbourne-based Pacific Hydro will each own 50 percent of the projects in the northeastern state of Rio Grande do Norte, the Rio de Janeiro-based mining company said today in a statement. They will have combined capacity of 140 megawatts.
Vale, which will consume all of the plants’ energy for 20 years, is seeking to produce more of the power it needs to expand its mining operations, according to the statement.
“Vale’s global electricity demand is expected to grow 150 percent by 2020,” Vania Somavilla, the company’s director of human resources, health and safety, sustainability and energy, said in the statement. “We’re looking for alternatives to meet this necessity in a sustainable manner.”
The projects are expected to start producing power in 2014 and will be Vale’s first wind farms, according to the statement.
Pacific Hydro has developed two Brazilian wind farms with 58 megawatts of capacity in the northeastern city of Paraiba that sell power to Centrais Eletricas Brasileiras SA (ELET6), according to the statement.
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