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ENGIE Energía Chile signed a long-term renewable energy contract with CAP Acero, a subsidiary of Grupo CAP to provide clean power to the latter’s steel mill.


The contract allows for CAP Acero to receive 420GW of certified renewable energy annually, beginning in early 2021 directly servicing the company’s steel mill Compañía Siderúrgica Huachipato. The use of renewable energy sources will allow the company to reduce its CO2 pollution by 2.5mn mt per year, according to a press release. The exact length of the contract was not disclosed.


Additional optimization and efficiency projects are being considered by CAP Acero and ENGIE, which will be announced once finalized. CAP Acero is also actively implementing internal initiatives to reduce the overall costs of steel production to improve profitability. 


Rodrigo Briceño, CAP Acero’s general director, said the agreement does not only help the company achieve its environmental objectives but, given the competitive price level, the energy source change will help the company better manage costs and flourish beyond its 70-year legacy. 


Axel Levêque chief executive office of ENGIE Chile, reinforced that despite the difficulties presented by COVID-19 the company will continue servicing clients and expanding services as energy is an essential need for companies and the community.

CAP Acero has an annual production capacity of 0.8mn mt of crude steel. 

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