Gerdau inaugurates solar farm in the United States

80MW plant will supply power to the steel mill in Midlothian, Texas, as part of the company’s plans to increase the use of renewable energy

São Paulo, June 30, 2023 – Gerdau announces today, (30), the inauguration of a photovoltaic complex in the city of Midlothian, Texas, in the United States. Built in partnership with 174 Power Global, a leading solar energy company, and TotalEnergies, a global multi-energy company, the plant will provide power to the steel mill.

Built adjacent to the Midlothian mill and equipped with 187,000 solar panels, the complex has the capacity to generate 80 megawatts (MW), the equivalent of the annual energy consumption of 14,000 Texas homes.

The initiative reflects Gerdau’s plans to increase the use of renewable energy at its industrial units in nine countries across the Americas, as part of its commitment to reduce its greenhouse gas emissions to 0.83 t of CO₂e per tonne of steel by 2031. “To reaffirm our position as a low carbon footprint company, we will continue to streamline our production process and invest in new clean and renewable energy sources. The solar farm will reduce the Midlothian unit’s annual carbon emissions by 81,000 tCO2e, which is equivalent to around 10% of the mill’s emissions,” said Gustavo Werneck, CEO of Gerdau.

The Midlothian project is the result of a 20-year energy purchase agreement between Ellis Solar, LLC and Gerdau in North America. TotalEnergies and 174 Power Global each hold a 50% stake in the Ellis Solar, LLC joint venture.

About Gerdau

With a history spanning 122 years, Gerdau is Brazil’s largest steel producer and one of the leading producers of long steel in the Americas and special steel in the world. In Brazil, Gerdau also produces flat steel and iron ore for its own use. It also has a new business division, Gerdau Next, which fosters entrepreneurship in segments adjacent to the steel industry. Guided by its purpose of empowering people who build the future, the company operates in nine countries and has over 36,000 direct and indirect employees. Gerdau is the largest recycling company in Latin America and uses scrap as an important input: 71% of its steel is produced from scrap. Every year, Gerdau transforms 11 million tonnes of scrap into a variety of steel products. The Company is also the world’s largest charcoal producer. As a result of its sustainable production matrix, Gerdau currently has one of the industry’s lowest average greenhouse gas emissions (CO₂e) of 0.89t/CO₂e per tonne of steel, which is less than half the global industry average of 1.91 t/CO₂e per tonne of steel (worldsteel). Gerdau’s target is to reduce its carbon emissions to 0.83 t/CO₂e per tonne of steel by 2031. Gerdau’s shares are listed on the São Paulo (B3), New York (NYSE) and Madrid (Latibex) stock exchanges.