Steel Dynamics announces renewable product purchase agreement

Fort Wayne, Indiana-based Steel Dynamics Inc. (SDI) has signed a renewable product purchase agreement (RPPA) with Nextera Energy Resources LLC, Juno Beach, Florida, for 308 megawatts of energy to be produced by a new wind farm project in Scurry County, Texas. This project marks significant progress toward the company's decarbonization goals, SDI says. 

Once operational, the new wind farm is expected to produce approximately 1.1 million MWh (megawatt hours) of electricity annually, equivalent to 16 percent of the company's steel mills' electricity usage in 2022, surpassing the company's 2025 goal of 10 percent renewable electricity and moving toward its 2030 goal of 30 percent. This also will contribute to SDI’s long-term reduction of Scope 2 greenhouse gas emissions intensity, the company adds. 

"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," SADI Chairman and CEO Mark D. Millett says. "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.” 

The new wind farm will be developed, owned and operated by 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 more than 100,000 average U.S. homes, SDI reports.  

"Large energy consumers, such as Steel Dynamics, are well-suited to benefit from the development of large renewable energy projects," Nextera Energy Resources President and CEO Rebecca Kujawa says. "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."