Industrial, Wind - December 9, 2019
Nucor plans first wind-powered steel plant
Nucor will become the first steel company with a manufacturing plant powered by wind energy with the installation of a $250 million "micro" mill in Sedalia, Mo.
The steel manufacturer signed a 75 MW PPA with Kansas City-based utility Evergy Inc., who will bring the wind capacity online, E&E News reported. Developers cite Missouri as an ideal spot for a wind farm to take advantage of the wind blowing across the central Plains in addition to its proximity to sources of scrap steel and end-use customers.
The wind farm that will supply the energy to the plant has not been announced yet, but it will offset 100% of the mill's electricity supply.
The news publication reported that 7% of global carbon emissions in 2013 were the result of steel production. Developers of the project see it as reflective of a larger trend toward the "greening" of the steel industry.
The steel plant is expected to be commissioned by the end of the year and Nucar and Evergy are currently seeking regulatory approval for a special tariff to serve the plant.
EE News also reported that a testimony filed with the Missouri Public Service Commission stated that company officials said: "access to a fixed, long-term, and competitive electric rate" was "critical" to the plant's success, in addition to a "steel mill bill" enacted two years ago that lets utilities apply for a decade of discounted electric rates for aluminum and steel producers or other large businesses that cause demand to buy more than 50 MW.