Steel Dynamics, Inc. signed a Renewable Product Purchase Agreement (RPPA) with a subsidiary of NextEra Energy Resources, LLC for 308 MW of energy provided by a wind farm in Scurry County, Texas. The announcement stands as one of the most substantial RPPAs of its kind in the North American steel industry and will help progress Steel Dynamics’ decarbonization goals.
“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 decarbonization of the U.S. economy, and meaningful collaborations like this will be key to meeting corporate, industry, and national carbon emissions reduction goals.”
The wind farm, owned and operated by the NextEra Energy subsidiary, is projected to produce nearly 1.1 million MWh of electricity annually and supply 16% of the company’s steel mills’ electricity usage. This surpasses Steel Dynamics’ goal of utilizing 10% renewable energy by 2025 and puts them in a favorable position to achieve 30% renewable energy by 2030.
“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,” said Mark Millett, Chairman and CEO of Steel Dynamics. “This investment represents a significant step forward on our path to carbon neutrality.”