Steel Dynamics Inks its Industry’s Largest RPPA


Indiana-based steel producer and metal recycler Steel Dynamics Inc. has signed a renewable product purchase agreement (RPPA) with a subsidiary of NextEra Energy Resources LLC for 308 MW of energy to be produced by a new wind project in Scurry County, Texas. The RPPA is the largest of its kind for the steel industry in North America.

Once operational, this wind farm 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.

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.

“Large energy consumers, such as Steel Dynamics, are well-suited to benefit from the development of large renewable energy projects,” states Rebecca Kujawa, president and CEO 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.”

Steel Dynamics was advised on the agreement by Schneider Electric Energy and Sustainability Services, which assisted the company in its project selection and negotiations.

Image by Balash Mirzabey on Freepik.

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