Nucor Signs Second Virtual Power Purchase Agreement for Renewable Energy in Texas

Rhea-AI Summary

Nucor Corporation (NYSE: NUE) has signed a 10-year Virtual Power Purchase Agreement (VPPA) with Ørsted for 100 megawatts from the Western Trail wind farm in Texas. This agreement, Nucor's second VPPA, complements a previous deal with EDFR Renewables for a 250-megawatt solar project in Texas. These initiatives aim to support renewable power generation 24/7, enhancing Nucor's sustainability efforts. Ørsted's WTW project is under construction and will utilize Nucor steel, contributing to its resilience during severe weather events.

Positive

• Signed a 10-year VPPA for 100 MW renewable energy from Ørsted's WTW wind farm.
• Second VPPA enhances Nucor's commitment to sustainability and clean energy.
• Potential to supply renewable power to the grid 24/7, aligning with Nucor's sustainability goals.

Negative

• None.

CHARLOTTE, N.C., March 24, 2021 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it has signed a 10-year Virtual Power Purchase Agreement (VPPA) with Ørsted Onshore North America, LLC for 100 megawatts from Ørsted's Western Trail wind farm (WTW) in North Texas. 

This is Nucor's second VPPA. Last year, Nucor signed a VPPA with EDFR Renewables North America to be the sole off-taker for EDFR's 250-megawatt Brazos Fork solar project, which is also located in Texas. Nucor's VPPA with Ørsted's WTW project complements the company's participation in Brazos Fork. Together, these 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 & Chief Executive Officer of Nucor Corporation. "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 WTW project is already under construction and is expected to be in service later this year. The project incorporates Nucor steel and steel products and is designed to continue generating power even during particularly severe weather, such as that recently experienced in Texas.

"We're excited to partner with Nucor in their efforts to invest in clean, renewable energy," said Vishal Kapadia, Senior Vice President and Chief Commercial Officer for Ørsted Onshore. "The PPA at Western Trail demonstrates our ability to provide customized solutions to support achievement of corporate sustainability ambitions."

About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (4) market demand for steel products; and (5) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2020 Annual Report on Form 10-K, Item 1A. Risk Factors. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.

View original content:http://www.prnewswire.com/news-releases/nucor-signs-second-virtual-power-purchase-agreement-for-renewable-energy-in-texas-301254937.html

SOURCE Nucor Corporation

FAQ

What is Nucor's recent Virtual Power Purchase Agreement about?

Nucor signed a 10-year VPPA with Ørsted for 100 MW from the Western Trail wind farm in Texas.

How does Nucor's VPPA support renewable energy?

The VPPA aims to provide renewable power to the regional electric grid 24/7, enhancing sustainability.

What is the significance of Nucor's second VPPA?

The second VPPA complements a prior agreement with EDFR Renewables for a solar project, furthering Nucor's commitment to renewable energy.

Where is the Ørsted Western Trail wind farm located?

The Ørsted Western Trail wind farm is located in North Texas.

When is the Ørsted Western Trail wind farm expected to be operational?

The wind farm is currently under construction and expected to be in service later this year.