GFG Alliance signs deal to develop renewable energy projects in Spain

UK-based conglomerate GFG Alliance has signed a deal with Spanish energy group Ignis to develop renewable energy projects in Spain that will supply power to potential GFG metals plants.

Under the agreement, Ignis and GFG’s energy arm SIMEC will invest in wind and solar facilities with a total capacity of 1.2GW, a joint statement said.

British industrialist Sanjeev Gupta’s GFG currently holds no industrial assets in Spain, but Alcoa Corp has confirmed it held talks with the company on its Spanish aluminium smelters.

“We’ve spent a lot of time in Spain looking at deals,” said Jay Hambro, GFG’s chief investment officer, before declining to comment on whether talks were continuing with Alcoa.

On Tuesday, Alcoa said it had failed to agree terms with GFG on the potential sale of its loss-making San Ciprián aluminium plant in Spain, which has annual capacity of 228,000 tonnes.

The joint venture between GFG and Ignis is focused on supporting the former’s goal of becoming carbon neutral by 2030 and its plan for growth in energy intensive industries, such as its aluminium business Alvance and steel unit Liberty Steel.