US steel producer Steel Dynamics Inc (NASDAQ:STLD) has clinched a deal to procure 308 MW of wind power in Texas under a deal with a unit of NextEra Energy Resources LLC.
The parties have signed a power purchase agreement (PPA) tied to a wind project in Texas’ Scurry County, Steel Dynamics said on Monday. According to the steelmaker, the power off-take contract is the largest of its kind for the steel industry in North America.
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Power supplies under the deal will come from a new wind park that is scheduled to go online by the end of next year. The plant will be built and operated by a subsidiary of NextEra Energy Resources, with its output expected to be around 1.1 million MWh annually, equal to the consumption of over 100,000 average US homes per year.
The contracted power volumes will cover about 16% of the electricity demand of Steel Dynamics’ steel mills, enabling the company to top its 2025 target for 10% renewable electricity usage. The steelmaker has set a goal of sourcing 30% of its total power from renewables by the end of the decade.