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SUSTAINABILITY

Learn more about
Nucor’s Virtual Purchase Power Agreements

Investing in renewable energy through virtual power-purchase agreements is one of the many tools Nucor is utilizing to lower its carbon footprint.

  1. What is the size of the commitment and how long are the contracts?

    ProjectLocationLength of ContractPPA Size
    Brazos Fork – Solar (EDF)Texas15 years250MW
    Western Trail – Wind (Orsted)Texas10 years100MW
    Total  350MW

    This information will be updated as new contracts are signed.

  2. How do we plan on allocating the renewable energy credits?

    Renewable energy credits (RECs) are an important part of our decarbonization strategy. It’s just one of many tools we are using to lower our carbon footprint. Nucor continues to analyze the highest and best use of these avoided emissions.

  3. Are we directly financing these renewable energy projects?

    Nucor has entered into a fixed fee contract with renewable energy providers to buy electricity for a set amount of time for a set price. The contract period starts when energy begins being produced. These partnerships are enabling the construction of new renewable energy projects.

  4. Are we directly reducing Nucor’s carbon footprint via these VPPAs?

    Yes, using RECs generated with these VPPAs will reduce Nucor’s attributed Scope 2 GHG emissions.

  5. Are these projects using Nucor steel?

    Offshore wind towers and solar farms require as much as 270 tons and 70 tons respectably of steel per megawatt of capacity. Steel is vital to a renewable energy future, and it just makes sense for these renewable energy projects to use some of the cleanest and most sustainable steel in the world. That is why Nucor intends to be the supplier of choice for any, and all renewable energy projects. In addition, our relationship with the renewable energy company goes beyond this initial project as we continue to support the installation and use of renewable energy across the country. We fully expect Nucor Steel components to be used in all PPA renewable energy projects that Nucor has participated in. We al see considerable opportunity for growth in other renewable energy projects even those in which we do not participate as a contracting party.

  6. What is our long-term strategy in executing VPPAs? What is the right mix of VPPAs?
    Is there a target REC number Nucor is trying to hit by a certain date?

    Nucor does not currently have a target number of VPPA’s but we are evaluating this.

    Even though Nucor has always produced steel via our recycling-based EAF approach, which is among the most sustainable and energy efficient process available, we realize that being among the most clean and sustainable steel companies in the world is not enough. We must do more to combat climate change.

    The RECS generated from VPPA’s can be used to reduce the carbon impact caused by our electricity use (scope 2 emissions), but we recognize that this method alone is not sufficient. That is why Nucor has instituted a multi-pronged GHG reduction strategy aimed at reducing all scopes of emissions. Nucor is exploring the feasibility of capturing and storing CO2 emissions, continuously evaluating, and investing in new technologies in steelmaking that will reduce our GHG intensity as well as our natural gas usage.

  7. Will we only execute VPPAs if we know Nucor Steel is being used for the project?

    Nucor is very interested in building strategic partner relationships. Offshore wind towers and solar farms require as much as 270 tons and 70 tons respectably of steel per megawatt of capacity. Steel is vital to a renewable energy future and it just makes sense for these renewable energy projects to use the cleanest and most sustainable steel in the world. That is why we believe Nucor should be the supplier of choice for any renewable energy projects. In addition, our relationship with the renewable energy company goes beyond this initial project as we continue to support the installation and use of renewable energy across the country. We fully expect Nucor Steel components to be used in all PPA renewable energy project that Nucor has partnered with.

  8. Will Nucor use the electricity generated at these facilities?

    Not necessarily. The renewable energy mix is up to the local energy provider. Nucor is excited about taking advantage of renewable energy sources on the grid as they come available. Some Nucor facilities are installing solar panels that generate green power specifically for their facility.

  9. Do you have to use a REC in the same area that it is generated?

    No, a REC generated in the US can be applied anywhere in the US. It can go to specific divisions or products but can only be used once.

  10. Are VPPA’s available on any renewable energy project or just solar and wind?

    They are currently available for any green energy project including geothermal and hydro.