Canadian Solar has signed a power purchase agreement with steel manufacturer Usinas Siderurgicas de Minas Gerais (Usiminas) to offload 50% of the total electricity production at its 381MW Morada do Sol solar farm in Brazil.
Under the agreement Canadian Solar will develop and build the project in the State of Goiás.
Construction expected to start in the first quarter of 2024 while commercial operations are anticipated in January 2025.
This is the first corporate PPA signed directly with an industrial customer under the Brazilian self-production framework, Canadian Solar said.
The Morada do Sol project will use Canadian Solar's high efficiency bifacial BiHiKu modules and once in operation, the project is expected to generate enough electricity to power approximately 432,700 households and displace 118,500 tons of carbon dioxide emissions.
Canadian solar chief executive and chairman Shawn Qu said: "While we are working towards our own ESG goals, we are also proud to partner with Usiminas in a tailored solution in the Morada do Sol project to achieve their energy cost reduction and ESG goals.
"This transaction also contributes to enhance our footprint and leading position in the Brazilian market, and demonstrates our capability to continue delivering sustainable, competitive, and innovative solutions to our customers in a country where we have cumulatively developed over 4.1GW of projects."
Usiminas chief executive officer Sergio Leite de Andrade said: "This year, as Usiminas celebrates its 60th anniversary, the company is looking to the future and is committed to ensure the sustainability of its operations.
“Initiatives such as the partnership with Canadian Solar for the supply of solar energy to power our operations are important steps in its journey to be increasingly aligned with the principles of the ESG agenda."