Steel Dynamics has announced a power purchase agreement with LLC (a subsidiary of NextEra Energy Resources LLC), for 308 MW of energy to produce by a new wind farm in Texas.
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%. Additionally, this is expected to meaningfully contribute to the company’s long-term reduction of Scope 2 greenhouse gas emissions intensity.
“As one of North America’s largest steel producers and a metals recycler, we are excited to be collaborating with NextEra Energy Resources, a generator of renewable energy from wind and sun, to place new renewable energy onto the ERCOT power grid,” stated Mark D. Millett, Chairman and CEO of Steel Dynamics.
“With our electric arc furnace steelmaking, North American recycling business, and circular manufacturing model, Steel Dynamics is invested in the production of lower-carbon steel products,” continued Millett. “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,” concluded Millett.
The new wind energy centre will be developed, owned, and operated by a subsidiary of NextEra Energy Resources and is expected to be operational by the end of 2024, with an estimated annual output equivalent to the electricity consumed by over 100 000 average US homes. In addition to bringing clean energy to the grid, the project will create jobs and provide long lasting economic benefits to the community. Steel Dynamics was advised on the agreement by Schneider Electric Energy and Sustainability Services, who assisted the company in its project selection and negotiations.
“Large energy consumers, such as Steel Dynamics, are well suited to benefit from the development of large renewable energy projects,” stated Rebecca Kujawa, President and CEO of NextEra Energy Resources. “We are committed to leading the decarbonisation of the US economy, and meaningful collaborations like this will be key to meeting corporate, industry, and national carbon emissions reduction goals.”
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
The Summer 2023 issue of Energy Global hosts an array of technical articles focusing on alternative fuels, battery storage solutions, solar optimisation, and more. This issue also features a regional report on the recent developments in the European renewables market.
Read the article online at: https://www.energyglobal.com/wind/03082023/nextera-energy-signs-ppa-for-texan-wind-farm/
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