Enel Peru and SIDERPERU, a Gerdau company, signed a 12-year energy supply contract through which the electricity company will supply energy from its renewable power plants to the steel company's operation. This alliance, which will last for more than a decade, involves part of the energy to be produced by Enel's upcoming non-conventional renewable energy plants: Wayra Extensión wind power plant and Clemesí solar plant.
Thanks to this agreement, Enel will supply 70MW of power to meet the electricity demand of SIDERPERU's operations, which will come from its renewable plants with hydro, solar and wind technology, including the production of Wayra Extension and Clemesí, which will start operations in 2023. In this way, the steel company will reduce its CO2 emissions to the environment.
“At Enel, we believe that the key to achieve the energy transition in the country is to work together with all actors in society, including large industries. This is why we are proud to work hand in hand with SIDERPERU and thus continue promoting the consumption of clean energy among our business customers, important actors to achieve a carbon neutral Peru”, said Marco Fragale, country manager of Enel Peru.
“This alliance represents a milestone for the energy transition we have been working on at SIDERPERU. In this way we are ensuring the use of renewable energies for our company for the next 12 years. In this way, we are joining forces to achieve Gerdau's goal of reducing our carbon intensity by 2031, in order to remain well below the world average for the steel industry, and also with the desire to be carbon neutral by 2050,” said Aldo Tapia, CEO of SIDERPERU.
The agreement provides for the installation of the first 500KWp solar plant, which can be expanded for self-consumption at the SIDERPERU steel complex. This system will be installed by Enel X and is part of the solutions offered by the company in terms of distributed generation, a mechanism through which users can generate their own energy at various points of consumption or surplus, increasing their savings in electricity bills and the reliability of supply.
In addition, during the term of the contract, Enel will issue SIDERPERU with I-REC Certificates, which ensure that the energy that supplies its operations comes from renewable sources. As is known, I-REC is an international standardized renewable energy certificate and is accepted by the Greenhouse Gas Protocol (GHG Protocol), the carbon footprint accounting standard most widely used by the world's largest companies, as an instrument to demonstrate effective emissions reductions in energy supply contracts.
About SIDERPERU
With more than 65 years of existence, we are the first Peruvian company dedicated to the manufacture and marketing of steel products. Since 2006, we have been part of Gerdau, one of the main suppliers of special long steel in the world and the largest recycler in Latin America. Our Industrial Complex, located in Chimbote, has an area of 600 hectares and a production capacity of more than 750 thousand tons of liquid steel per year for the local and foreign markets.
As part of our strategic objectives, we have been developing various programs aligned with the ESG guideline: Environmental Care, Social Responsibility and Corporate Governance; initiatives with which we reaffirm our commitment to sustainability. We have Quality Management, Environmental Management and Occupational Health and Safety Management Systems, which are certified by ISO 9001, ISO 14001 and ISO 45001. We ensure the quality of our products, offer integrated solutions to our customers and leave a positive footprint on our environment.
About Gerdau
With 121 years of history, Gerdau is the largest Brazilian steel producer and one of the main suppliers of long steel in the Americas and of specialty steel in the world. In Brazil, it also produces flat steel, in addition to iron ore for its own consumption. It also has a new business division, Gerdau Next, which aims to enter into segments adjacent to steel. With the aim of empowering people who build the future, the company is present in 9 countries and has more than 36 thousand direct and indirect employees in all its operations. The largest recycler in Latin America, Gerdau uses scrap as an important raw material: 73% of the steel it produces is made from this material. Annually, 11 million tons of scrap are transformed into various steel products. The company is also the largest charcoal producer in the world, with more than 250 thousand hectares of forest base in the state of Minas Gerais. As a result of its sustainable production matrix, Gerdau currently has one of the lowest greenhouse gas (CO₂e) emission averages, at 0.90 t CO₂e per ton of steel, which is approximately half the industry average of 1.89 t CO₂e per ton of steel (Worldsteel). In 2031, Gerdau's carbon emissions are to decrease to 0.83 t CO₂e per ton of steel. Gerdau shares are listed on the São Paulo (B3), New York (NYSE) and Madrid (Latibex) stock exchanges.
Enel, which celebrates its 60th anniversary this year, is a multinational power company and a leading integrated player in the global energy and renewable energy markets.
Globally, it is the largest private renewable energy operator, the largest network operator by number of end-users and the largest operator of renewable retail by customer base. The Group is the world leader in demand response and Europe's largest electric utility by ordinary EBITDA [1].
Enel is present in more than 30 countries around the world and produces energy with a total capacity of more than 90 GW. Enel distributes electricity through a network of more than 2.2 million kilometers to more than 75 million end users. The Group brings energy to some 70 million homes and businesses. Enel Green Power, the renewable energy arm of Enel, has a total capacity of about 54 GW and a mix generation capacity that includes wind, solar, geothermal and hydroelectric power, as well as energy storage facilities in Europe, the Americas, Africa, Asia and Oceania. Enel X Global Retail, Enel's global business line for advanced energy services, has a total capacity of around 7.7 GW of demand response globally managed and has installed 80 MW of storage capacity behind-the-meter. In addition, Enel X Way is the Group's new global business line dedicated entirely to electric mobility, which manages around 320,000 public and private electric vehicle charging points around the world, both directly and through interoperability agreements.
