Gestamp has signed an agreement with Cemig, considered the largest integrated company in the electricity sector in Brazil. With 70 years of history. It operates in the areas of generation, transmission, distribution and electricity marketing and also in the distribution of natural gas and efficient use of energy, so that the electricity supply at its plants in Brazil comes from renewable energy sources. The agreement (in which IBS Energy has collaborated as energy advisor) is a fundamental step in its strategy to ensure that from 2023 onwards all of Gestamp's production and R&D centers in Brazil will be powered by 100% renewable energy.
The company thus becomes the first in the automotive components sector in Brazil to operate with electricity generated entirely from renewable sources. Gestamp will receive a supply of energy equivalent to 79.2 GWh from renewable energy in an agreement that includes the modality of two PPAs (power purchase agreements) with a total duration of 10 years.
Thanks to this agreement, which begins in January 2024, the multinational will reduce its CO2 emissions by 10,750 tons per year. This represents a reduction of 3% of the total carbon footprint thanks to Gestamp's electricity use and an amount equivalent to the CO2 absorbed by 136,558 trees.
The agreement also includes the issue of I-REC (International REC Standard) by the company Cemig, for consumption in 2023. The I-REC certificate issued by the International REC Standard Foundation (I-REC Standard) is a solid standard for the development of renewable energy attribute and tracking system.This standard will demonstrate that the energy used, is a greenhouse gas emissions free aligning with Gestamp’s environmental commitments.
Gestamp has been present in Brazil since 1997 and has a total of seven plants and one R&D center, most of them in the state of Sao Paulo. The electricity consumed at all these Brazilian sites accounts for 6 % of Gestamp's consumption worldwide.
"This agreement symbolises another milestone for Gestamp in the company's global sustainability strategy and is part of our goal to reduce emissions," said Gestamp's CEO, Francisco J. Riberas.
For his part, the CEO of Cemig, Reynaldo Passanezi Filho, pointed out the importance of agreements such as the one signed with Gestamp "Our commitment to sustainability is to provide our employees and suppliers, in line with the strategies of our customers, with a balance between economic-financial, environmental and social aspects, with the aim of continuously contributing to sustainable development."
Gestamp and CEMIG with the environment
This agreement is part of an ambitious strategy of both companies in the medium and long term. In the case of Gestamp, it encompasses actions aimed at making more efficient use of raw materials and supplies like energy and water. As well as, reducing greenhouse gases to contribute in the fight against climate change and promoting a circular economy.
In this context, the agreement with Cemig represents another step forward in the company's long-standing commitment to achieving the highest sustainability standards throughout the entire production chain. Thus, from 2022 and thanks to a similar agreement signed with Naturgy, all of Gestamp's production and R&D centers in Spain are being powered by 100% renewable energy.
Since 2020, Cemig has issued more than 7.5 million Renewable Energy Certificates and is alingned with ESG best practices. It allows customers to demonstrate the renewable origin of energy, through the Cemig-REC and I-REC Renewable Energy Certificates, generating additional value in the commercialization of energy. It has an energy efficiency programme, with the application of more than R$ 138 million in the last 2 years and is present in the main sustainability indexes, which increase the company's results.