Steel Dynamics Partners with NextEra Energy for Renewable Energy Transition

Steel

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by | Aug 1, 2023

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Steel

(Credit: Canva Pro)

Steel Dynamics has taken a step toward its decarbonization goals by signing an agreement with a subsidiary of NextEra Energy Resources, which secures 308 megawatts of renewable energy from a new wind farm project in Scurry County, Texas. The renewable energy deal is the largest of its kind in the North American steel industry, according to Steel Dynamics. 

Advancing Decarbonization Targets

The wind farm project is expected to generate around 1.1 million megawatt-hours of electricity annually, equivalent to 16% of Steel Dynamics‘ steel mills’ electricity usage in 2022. This surpasses the company’s 2025 goal of achieving 10% renewable electricity and puts it on track to reach its 2030 target of 30%. This investment will contribute to the North American steel producer and metals recycler’s long-term reduction of Scope 2 greenhouse gas emissions intensity.

Mark D. Millett, chairman and chief executive officer of Steel Dynamics, highlighted the company’s existing strategies in producing lower-carbon steel through electric arc furnace steelmaking, North American recycling operations, and circular manufacturing. Millet said that Steel Dynamics has some of the lowest greenhouse gas emissions in the industry worldwide and described the investment in renewable energy as an effort towards achieving carbon neutrality and asserted the steel industry’s crucial role in fostering a sustainable future with essential contributions to manufacturing and infrastructure.

The new wind energy center will be owned, developed, and operated by a NextEra Energy Resources subsidiary and is expected to commence operations by the end of 2024. The wind farm’s estimated annual output is equivalent to powering more than 100,000 average U.S. homes. Besides contributing clean energy to the grid, the project will create job opportunities and bring economic benefits to the local community.

Steel Dynamics’ Sustainability Measures

Steel Dynamics produces a wide range of steel products and participates in circular manufacturing practices, eager to solidify its position as a leader in the production of lower-carbon steel.

Steel Dynamics’ partnership with NextEra Energy Resources is crucial for the company as it pursues a leading role in sustainable steel production. Schneider Electric Energy and Sustainability Services provided negotiations in the partnership between Steel Dynamics and NextEra Energy Resources.

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