Nucor Signs Virtual Power Purchase Agreement in Texas

Rhea-AI Summary

Nucor Corporation (NYSE: NUE) has signed a 15-year Virtual Power Purchase Agreement with EDF Renewables for 250 MWac of solar energy in Texas. This marks Nucor's first VPPA and the largest for the steel sector. The project aims to reduce Nucor's carbon footprint and expand clean energy in the region, with construction starting in summer 2022 and expected electricity production beginning in 2023. The agreement reflects Nucor's commitment to sustainable practices and will support local job creation.

Positive

• Signing of a 15-year Virtual Power Purchase Agreement for 250 MWac of solar energy improves sustainability efforts.
• Nucor's first VPPA is the largest in the steel industry, showcasing a commitment to reducing carbon footprint.

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CHARLOTTE, N.C., Nov. 13, 2020 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it has signed a 15-year Virtual Power Purchase Agreement (VPPA) with EDF Renewables North America (EDFR) for 250 megawatts (MWac) of new solar energy in Texas.  The agreement, which will enable EDFR to add more clean energy to the region's power grid, is Nucor's first VPPA and the largest of its kind for the steel industry.

"Nucor is one of the most efficient and cleanest steel producers in the world, and we are always looking for ways to reduce our carbon footprint. That is why we are proud to make our production process even cleaner by supporting the development of this solar energy project," said Leon Topalian, President & Chief Executive Officer of Nucor Corporation. "We are already North America's largest recycler, and supporting the addition of more clean power to the regional grid via this agreement further demonstrates Nucor's commitment to sustainable steelmaking."

Construction on EDFR's solar project is expected to begin in the summer of 2022 with production of electricity estimated to begin in 2023. Once completed, the expected annual output of the solar facility will be the equivalent of the electricity consumed by nearly 50,000 average Texas homes.  

"EDF Renewables is pleased to partner with Nucor and help them with their sustainability initiatives in a cost-effective manner," said Ryan Pfaff, Executive Vice President, Grid-Scale Power at EDF Renewables.  "Nucor's decision to procure solar energy allows this project to move forward into construction, which will provide an economic boost to the local economy through new construction jobs and expanded tax base."

GreenFront Energy Partners, an alternative energy advisory firm based in Richmond, Virginia, acted as Nucor's financial adviser on this transaction.  WattTime, a clean energy-focused subsidiary of the Rocky Mountain Institute, assisted Nucor with evaluating the avoided emissions impact of the agreement.

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 "anticipate," "believe," "expect," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. 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 pressure 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 changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States, as well as prevailing domestic prices for oil and gas; (5) energy costs and availability; and (6) the impact of the COVID-19 pandemic. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2019 and in "Item 1A. Risk Factors" of Nucor's Quarterly Report on Form 10-Q for the quarter ended October 3, 2020. 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, except as may be required by applicable law.

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SOURCE Nucor Corporation

FAQ

What is the significance of Nucor's Virtual Power Purchase Agreement?

Nucor's VPPA, signed with EDF Renewables for 250 MWac, is significant as it represents the largest solar agreement in the steel industry and supports the company's sustainability goals.

When will construction on the solar project begin?

Construction on the solar project is expected to begin in the summer of 2022.

What is the expected output of the solar facility?

The expected annual output of the solar facility will be equivalent to the electricity consumed by nearly 50,000 average Texas homes.

How does the VPPA reflect Nucor's commitment to sustainability?

The VPPA supports the development of clean energy and aims to reduce Nucor's carbon footprint, reinforcing its position as a leader in sustainable steel production.

What are the potential economic benefits of this agreement for Texas?

The construction of the solar project is expected to provide an economic boost to the local economy through new construction jobs and an expanded tax base.