Brazil’s ferroalloys producer Ferbasa has signed a memorandum of understanding with the energy firm AES Tiete Energia to purchase electricity to reduce its cost of production.
Under the 20-year 80MW power purchase agreement, Ferbasa will get electricity from AES Tiete Energia from 2024, the company said in a statement. The mentioned volume of electricity does not represent an increase in Ferbasa’s production capacity, but will reduce the cost of electricity needed to make its products, the company noted.
Both companies are negotiating a power purchase agreement (PPA) which will detail the commitments already signed in the memorandum, Ferbasa said.
Ferbasa produced 226,132mt of ferroalloys in the first nine months of 2020, up by 25.6pc from 179,982mt produced in the same period of 2019, according to figures from the company.