Steel Dynamics Accelerates Progress Towards Decarbonization Goals with Renewable Energy

1 August 2023

Steel Dynamics, Inc., announced that it has signed a Renewable Product Purchase Agreement (RPPA) with a subsidiary of NextEra Energy Resources, LLC for 308 megawatts of energy to be produced by a new wind farm project in Scurry County, Texas. The RPPA is the largest of its kind for the steel industry in North America. This project marks significant progress toward the company's decarbonization goals.

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 its largest metals recycler, we are excited to be collaborating with NextEra Energy Resources, the world's largest generator of renewable energy from the wind and sun, to place new renewable energy onto the ERCOT power grid," stated Mark D. Millett, Chairman and Chief Executive Officer of Steel Dynamics.

"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," 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 center 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 U.S. 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 Chief Executive Officer 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."