Steel Mills
Nucor Signs Second VPPA for Renewable Energy
Written by Sandy Williams
March 24, 2021
Nucor has signed its second Virtual Power Purchase Agreement with another Texas energy provider. The 10-year VPPA with Ørsted Onshore North America, LLC, for 100 megawatts from Ørsted’s Western Trail wind farm adds to Nucor’s commitment to clean, renewable energy, the company said.
In November, Nucor signed a VPPA with EDFR Renewables North America as the sole off-taker for EDFR’s 250-megawatt Brazos Fork solar project. Together, the two projects have the potential to supply renewable power to the regional electric grid 24 hours a day.
“As an electric-arc furnace (EAF) steelmaker and North America’s largest recycler, Nucor is already among the cleanest and most sustainable steel producers in the world. This agreement will enable us to further reduce our climate footprint beyond our operations,” said Leon Topalian, president and CEO of Nucor. “Supporting the growth of renewable power generation is not only fundamental to who we are as a company, it also allows us to continue to lead the way forward for the global steel industry.”
Ørsted’s wind project is under construction in North Texas, incorporating Nucor steel, and is expected to be in service later this year. The wind turbines are designed to continue generating power even during severe weather, which will help mitigate power outages like those seen during the recent deep freeze across Texas, the energy company said.
What is a Virtual Power Purchase Agreement?
A VPPA is a financial contract in which a company agrees to purchase a project’s renewable energy for a pre-agreed price. When the energy is sold, the project receives the current market price; if it is higher than the fixed VPPA, the buyer receives the difference, and if lower, the buyer pays the difference to the project. The VPPA acts as a hedge against volatile energy prices for the purchaser and supports the development of new renewable energy resources by the utility company.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cliffs unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.