Leveraging 100+ years of renewable energy expertise

At Votorantim, as a permanently capitalized holding company with more than 100 years of business activities, our capital allocation strategy aims to deliver superior financial returns in the long run aligned with a positive social and environmental impact. The concept of being stewards of sustainable businesses has always been part of our DNA, with the introduction of pioneer practices since our foundation, including powering our manufacturing operations with renewable energy sources. Such approaches and expertise have led us to the creation of one of the largest renewable energy platforms in Brazil today.

Historically, our portfolio companies have invested in the development, construction, and operation of renewable generation assets, resulting in Votorantim being positioned as the largest “self-production” platform in Brazil. In the 1950s, for example, Companhia Brasileira de Alumínio – CBA invested in the construction of the first Brazilian integrated aluminum business, including hydroelectric power plants designed exclusively to supply the company’s power needs and make it energy-independent, which to this day remains a core part of the company’s strategy. That same approach was taken across our industrial businesses, from cement to steel, zinc, pulp, and paper. Over the years, with the expertise in renewable energy development, implementation, and operation, Votorantim has significantly expanded its generation footprint as well as its trading and services capabilities, and eventually this internal unit became an independent company investing and servicing new clients beyond our companies.

New business model and strategic partnership accelerate growth and yield Brazil’s first hybrid wind-solar project

In 2017, Votorantim alongside CPP Investments created a new joint venture focused on investing in Brazil’s power generation market over the long term. Both partners have contributed in a meaningful way, with industry knowledge, investment skills and capital, building on top of Votorantim’s long-established expertise locally. Since then, the partnership has developed and acquired several wind, hydro, and solar assets. In 2021, for example, the joint venture announced Brazil’s first hybrid wind-solar project, which became a case study for the regulation over future hybrid energy projects that could bring significant efficiencies to the power grid.

As an evolution of this partnership, in 2021 Votorantim and CPP Investments announced the combination of the joint venture with other Votorantim renewable generation assets to create one of the largest renewable energy platforms in Brazil, with an installed capacity of c. 3.5 GW and a significant pipeline of projects for further growth. Once the transaction is completed in 1Q22, the new combined company will be listed in the Novo Mercado segment of the B3 Stock Exchange in Brazil. This new business model translates the combination of Votorantim’s and CPP’s long-term investment approach with a spirit of entrepreneurship fueled by an ESG agenda.

Energy transition, decarbonization and new investment opportunities

Votorantim and CPP Investments have also announced in 2021 the intention to create a new venture focused on the energy transition, decarbonization and new technologies, with an early-stage bias and broad investment objectives beyond traditional greenfield renewable projects. This new venture will also leverage on potential synergies with Votorantim portfolio companies on their journey to reduce emissions and transition to a net-zero world.

Using nature-based solutions to preserve the largest private Atlantic Forest reserve in Brazil

Votorantim had, early on, the view that to secure water for its hydroelectric dams in the long term, the whole ecosystem around the rivers would have to be highly protected. Since the 1950s, Votorantim owns and conserves the largest private Atlantic Forest reserve in Brazil, with close to 80,000 acres, where seven hydroelectric power plants were built originally to supply energy to the abovementioned aluminum plant. In 2012, this area was transformed into Legado das Águas (“Water Legacy”), and it is managed by Reservas Votorantim, a wholly owned subsidiary with a business model focused on nature-based solutions, proving that the conserved forest has the resources to sustain itself and the communities around it.