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US steelmakers explore "decarbonization" road

Dec. 26, 2019

The US steel industry is embracing an important node in a green transition, and the country's first steel mills driven by renewable energy are coming soon. Over the years, the large amount of cheap coal power and shale gas has promoted the continuous expansion of US steel smelting. With the global acceleration of the green energy transformation, the cost of wind power and photovoltaic power continues to fall, and more and more steelmakers in the country have set foot In order to "decarbonize" the road, seek to minimize the carbon footprint of "large emitters" of steel smelting.


"Wind Energy Steelmaking" or realized by the end of the year

The US CNBC News reported recently that the first 100% wind-powered steelmaking plant in the United States is expected to be put into operation by the end of this year. The $ 250 million “wind energy steelmaking plant” is owned by Nucor, the second largest steel company in the United States. The site is located in Sedalia, Missouri. The company will use wind power to drive electric arc furnaces and scrap steel. Melting turns it into new recycled steel.


Nucor said in a statement that the company has been looking for ways to improve energy efficiency to reduce its negative impact on the environment and is pleased to be the first "wind energy steelmaker" in the United States. Wind power is gradually becoming one of the main clean power supply methods, and it can undertake power supply for a series of large power demand businesses, including steel bar rolling.


It is understood that the 75 MW power purchase agreement reached between Nucor and the Missouri utility Evergy is the main reason for the birth of this “wind energy steelmaking plant”. The wind power resources in the Midwestern United States are relatively abundant, which makes Missouri, Nebraska, Kansas and other states have a competitive advantage in wind power generation. Compared with the declining coal and low-cost natural gas, it can provide unlimited and clean supply and Cheap wind power.


Nucor did not initially aim for “100% wind power operation of steel mills”, but focused on “close to scrap resources” and “end-use customers”, but Missouri ’s long-term, fixed and cheap wind power prices are too attractive Coupled with Nucor's pursuit of sustainable development goals, the company ultimately chose to “settle in” in Missouri, emphasizing that “clean and cheap electricity prices” are critical to the steelmaking industry.


It is worth mentioning that under the Missouri Steel Works Act, the state allows utility companies to apply for discounted electricity prices for up to ten years for aluminum and steel producers and other large companies purchasing more than 50 MW of electricity. Evergy is currently applying to the state regulator for this matter.


UckEvergy senior vice president ChuckCaisley said that as more and more investors and companies pursue sustainability and cleanliness goals, they will invest in or rebuild such plants more frequently. "In Kansas and Missouri, we have a great price advantage, while meeting existing and potential customers' clean power needs, further improving the environment and creating jobs." He said, "We hope that in the next few years we will Many manufacturers are attracted to the Midwest. "


This wind mill is expected to require 250 employees when it is put into operation. In the future, the Sedalia area will be supplied with rebar that can be used for buildings. Sedalia's executive director of economic development, Jessica Craig, said that the steel plant has created 500 construction jobs in the past 18 months of construction, which is vital to the economic development of the community. "Given the power supply nature of this steelmaking plant, we are about to usher in a transformative development opportunity." She said, "whether it is economic or social benefits, or even the enthusiasm to respond to the climate change crisis."

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