Hybar said the company successfully raised $700 million through a combination of debt and equity financing for a green steel rebar mill in Arkansas.
As a fairly new environmentally sustainable scrap metal recycling company, Hybar intends to use this investment to establish, operate, and manage a steel rebar mill that champions advanced technology and eco-friendly practices. The funding was spearheaded by TPG Rise Climate, the climate-focused investing arm of TPG Rise, alongside Global Principal Partners, the investment entity representing Hybar's seasoned senior management team.
Of the total funds secured, $470 million is allocated for the construction of the rebar mill. The remaining funds will be put towards the mill's operational launch, including initial setup costs and debt service expenditures during the construction phase.
This mill is slated to take approximately 22 months to complete and will be located on a sprawling 1,300-acre greenfield site in northeast Arkansas. This prime location boasts direct access to barge, rail, and truck transportation options, positioning the mill for optimal efficiency and logistical ease.
The anticipated output of the mill will encompass a diverse range of high-yielding rebar, with a primary focus on supplying large-scale infrastructure projects. Likewise, these projects align with the objectives of the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
Hybar's rebar mill aims to demonstrate key components sourced from industry leaders like SMS group and Primetals Technologies. This technology is designed to significantly reduce energy consumption during the rebar production process, setting a new benchmark for efficiency. With hopes of reducing energy consumption during production, Hybar’s mill is projected to produce lower greenhouse gas emissions in comparison to traditional rebar mills.
Hybar has a goal to increase decarbonization efforts across the steel industry. To enhance this pursuit, Hybar’s location allows it to have a direct connection to an adjacent solar facility, which allows the mill to have the capability of sourcing 100% renewable energy for certain periods. In terms of production capacity, Hybar's mill is projected to yield an annual output of 630,000 tons of rebar, with approximately 154 employees.