FORT
WAYNE, Ind., July 31,
2023 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS:
STLD) today 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."
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers
and metals recyclers in North
America, based on estimated annual steelmaking and metals
recycling capability, with facilities located throughout
the United States, and in
Mexico. Steel Dynamics produces
steel products, including hot roll, cold roll, and coated sheet
steel, structural steel beams and shapes, rail, engineered
special-bar-quality steel, cold finished steel, merchant bar
products, specialty steel sections, and steel joists and deck. In
addition, the company produces liquid pig iron and processes and
sells ferrous and nonferrous scrap.
Forward-Looking Statements
This press release contains some predictive statements about
future events, including statements related to conditions in
domestic or global economies, conditions in steel, aluminum, and
recycled metals market places, Steel Dynamics' revenues, costs of
purchased materials, future profitability and earnings, and the
operation of new, existing or planned facilities. These statements,
which we generally precede or accompany by such typical conditional
words as "anticipate", "intend", "believe", "estimate", "plan",
"seek", "project", or "expect", or by the words "may", "will", or
"should", are intended to be made as "forward-looking", subject to
many risks and uncertainties, within the safe harbor protections of
the Private Securities Litigation Reform Act of 1995. These
statements speak only as of this date and are based upon
information and assumptions, which we consider reasonable as of
this date, concerning our businesses and the environments in which
they operate. Such predictive statements are not guarantees of
future performance, and we undertake no duty to update or revise
any such statements. Some factors that could cause such
forward-looking statements to turn out differently than anticipated
include: (1) domestic and global economic factors; (2) global
steelmaking overcapacity and imports of steel, together with
increased scrap prices; (3) pandemics, epidemics, widespread
illness or other health issues, such as COVID-19 or its variants;
(4) the cyclical nature of the steel industry and the industries we
serve; (5) volatility and major fluctuations in prices and
availability of scrap metal, scrap substitutes and supplies, and
our potential inability to pass higher costs on to our customers;
(6) cost and availability of electricity, natural gas, oil, or
other energy resources are subject to volatile market conditions;
(7) increased environmental, greenhouse gas emissions and
sustainability considerations or regulations; (8) compliance with
and changes in environmental and remediation requirements; (9)
significant price and other forms of competition from other steel
and aluminum producers, scrap processors and alternative materials;
(10) availability of an adequate source of supply of scrap for our
metals recycling operations; (11) cybersecurity threats and risks
to the security of our sensitive data and information technology;
(12) the implementation of our growth strategy; (13) litigation and
legal compliance; (14) unexpected equipment downtime or shutdowns;
(15) governmental agencies may refuse to grant or renew some of our
licenses and permits; (16) our senior unsecured credit facility
contains, and any future financing agreements may contain,
restrictive covenants that may limit our flexibility; and (17) the
impacts of impairment charges.
More specifically, we refer you to our more detailed explanation
of these and other factors and risks that may cause such predictive
statements to turn out differently, as set forth in our most recent
Annual Report on Form 10-K under the headings Special Note
Regarding Forward-Looking Statements and Risk Factors, in our
Quarterly Reports on Form 10-Q, or in other reports which we file
with the Securities and Exchange Commission. These reports are
available publicly on the Securities and Exchange Commission
website, www.sec.gov, and on our website, www.steeldynamics.com
under "Investors – SEC Filings."
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SOURCE Steel Dynamics, Inc.