The Brazilian mining and metals sector is generating growing demand for renewable energy amid efforts to reduce greenhouse gas emissions. “The mining and metals sector currently represents 60% of the energy traded in our portfolio, and we have been developing a relationship with the sector, not only as suppliers, but as partners with our customers, creating energy solutions after knowing their specific needs,” Itamar Lessa (pictured), the commercial director of Brazilian enewable energy firm Casa dos Ventos, told BNamericas. The company is also evaluating other initiatives such as the potential use of green ammonia and green hydrogen. “The segment demands a lot of specific studies in its decarbonization journey,” said Lessa. Casa dos Ventos has entered into partnerships for renewable energy projects. One of the company’s flagship initiatives is ArcelorMittal Brasil-Casa dos Ventos Energias Renováveis, a JV formed by ArcelorMittal Brasil and Casa dos enos to develop the Babilônia Centro wind farm in Bahia state. According to Lessa, the mining and metals segment will generate more demand for clean energy solutions both in operations and in logistics, opening room for the use of ammonia in locomotives and also for green hydrogen in operations. “Brazil can be a major player in the energy transition and this also applies to the logistics of mining companies. But there are some particularities. In the area of railways, locomotives, we see the feasibility of electric technology for stretches of up to 200km. Above that other solutions will be required. I see space for the use of ammonia as a fuel. In the next five years we will start to see [diesel-run] locomotives being replaced by those using ammonia,” he said. “Other demand will be for green hydrogen, which in Brazil, due to the characteristics of the country, should advance faster than, for example, offshore wind energy,” said Lessa. According to the director, green hyrogn will tend to be used by steelmakers to replace traditional blast furnaces. The growing use of renewable energy can also help Brazil develop a more vertical mining chain in a country that is a global powerhouse in terms of iron ore production. “Brazil produces 18% of all iron ore in the world and if we look at this share in terms of quality iron ore, it would be even greater, while in the steel industry we represent only 2% of world production, so there is plenty of room for us to work on products for exports with higher added value, with more steel being produced, without the use of high polluting furnaces, with green hydrogen reducing these emissions,” said Lessa. “Another particular aspect of the mining sector is that the client does not want to be exposed to currency fluctuations. Mining companies’ revenue is generally in US dollars, but they don’t want to have to carry out hedging operations with their energy contracts, so we end up making specific contracts that remove theirexpoure to fluctuations in the currency,” he added. With the increase in demand, Casa dos Ventos has also taken precautions to avoid bottlenecks. Earlier this year, the firm reached an agreement with Danish wind power solutions provider Vestas for the acquisition of 291 turbines totaling 1.3GW in capacity. Asked whether Casa dos Ventos sees signs of a reduction in the price of some materials used by renewable firms amid signs of deflation in China, a country that produces much of the equipment, Lessa said he has not yet seen such effects.