- Vale to receive ~$1B in cash by selling 70% of Alianca Energia to Global Infrastructure Partners.
- Joint venture will consolidate key renewable assets: Sol do Cerrado solar plant and Risoleta Neves hydro plant.
- Move strengthens Vale’s energy transition strategy and unlocks capital for core mining operations.
Vale partners with GIP in $1B renewable energy joint venture.
Vale announced Monday it will sell a 70% stake in its Brazilian renewable energy arm, Alianca Energia, to U.S.-based investment firm Global Infrastructure Partners (GIP).
In a securities filing, Vale confirmed it will receive approximately $1 billion in cash once the transaction closes. The deal forms a new joint venture between Vale and GIP, marking a major step in the mining giant’s decarbonization strategy
“After the deal, Alianca Energia will also consolidate Sol do Cerrado solar plant and 100% of hydro power plant Risoleta Neves, both located in the southeastern Minas Gerais state,” Vale stated in the filing.
This expansion positions the JV to scale renewable energy output and contribute to Brazil’s energy matrix while supporting Vale’s broader ESG commitments.
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Vale took full control of Alianca Energia in 2023 by acquiring the remaining 45% stake from its original partner Cemig for 2.7 billion reais. The company and Cemig had co-founded the venture in 2013.
The move follows reports from February that Vale was in advanced talks to divest a majority stake in Alianca and the Sol do Cerrado solar plant to GIP.
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