Nucor Corporation announced that it has signed a 15-year Virtual Energy Purchase Agreement (VPPA) with EDF Renewables North America (EDFR) for 250 MWAC of new solar energy in Texas. The agreement, which enables EDFR to provide more clean energy to the region’s electrical grid, is Nucor’s first VPPA and the largest of its kind for the steel industry.
“Nucor is one of the most efficient and cleanest steel producers in the world and we are always looking for ways to reduce our carbon footprint. That’s why we’re proud to make our production process even cleaner by supporting the development of this solar energy project, ”said Leon Topalian, President and CEO of Nucor Corporation. “We are already North America’s largest recycler, and the support of adding more clean electricity to the regional grid through this agreement further shows that Nucor is committed to sustainable steelmaking.”
Construction of EDFR’s solar project is expected to begin in summer 2022. Electricity generation is expected to start in 2023. When complete, the expected annual output of the solar array will be equivalent to the electricity used by nearly 50,000 average Texas households.
“EDF Renewables is excited to partner with Nucor to support their sustainability initiatives in a cost-effective manner,” said Ryan Pfaff, executive vice president of utility power, EDF Renewables. “Nucor’s decision to source solar power will allow this project to move ahead with construction, which will boost the local economy through new construction jobs and an expanded tax base.”
GreenFront Energy Partners, an alternative energy consultancy based in Richmond, Virginia, acted as financial advisor to Nucor on this transaction. WattTime, a clean energy subsidiary of the Rocky Mountain Institute, assisted Nucor in assessing the avoided emissions impact of the agreement.
Nucor and its subsidiaries are manufacturers of steel and steel products with operations in the United States, Canada and Mexico. Products manufactured include: carbon and alloy steel – in bars, beams, sheets and plates; Hollow tube with structural cross section; electrical line; Steel piles; Steel beams and joists; Steel deck; Reinforcing steel; cold finished steel; Precision castings; Steel fastenings; Metal construction systems; Steel mesh; and wire and wire mesh.
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