US firm Steel Dynamics has signed a renewable PPA with a subsidiary of NextEra Energy Resources to offtake 308MW from a new wind farm project in Scurry County, Texas.
The PPA is the largest of its kind for the steel industry in North America and the project marks significant progress toward the company’s decarbonisation goals, the steel producer said.
Once operational, this wind farm project is expected to produce approximately 1.1 million MWh of electricity annually, equivalent to 16% of the company’s steel mills’ electricity usage in 2022, surpassing the company’s 2025 goal of 10% renewable electricity and moving toward its 2030 goal of 30%.
The new wind project will be developed, owned, and operated by a subsidiary of NextEra Energy Resources and is expected to be operational by the end of 2024.
Chairman and chief executive of Steel Dynamics Mark D Millett said: “As one of North America’s largest steel producers and its largest metals recycler, we are excited to be collaborating with NextEra Energy Resources, the world’s largest generator of renewable energy from the wind and sun, to place new renewable energy onto the ERCOT power grid.
“With our electric arc furnace steelmaking, North American recycling business, and circular manufacturing model, Steel Dynamics is already a leader in the production of lower-carbon steel products.
“Our steel mills’ greenhouse gas emissions are among the lowest in the industry globally.
“This investment represents a significant step forward on our path to carbon neutrality.
“The steel industry is vital to a healthy manufacturing base and sustainable infrastructure, and we produce the steel required for a sustainable future.”
Rebecca Kujawa, president and chief executive of NextEra Energy Resources, said: “Large energy consumers, such as Steel Dynamics, are well suited to benefit from the development of large renewable energy projects.
“We are committed to leading the decarbonization of the US economy, and meaningful collaborations like this will be key to meeting corporate, industry, and national carbon emissions reduction goals.”