Evraz Rocky Mountain Steel set out to reduce carbon-intensive steel industry emissions. Solar power was the result. Evraz America is the owner of the Pueblo, Colorado plant.
This giant steel company was able start building the largest solar-powered steel plant in the Rockies. Evraz North America, headquartered in Chicago, partnered with Xcel Energy in 2019 and Lightsource BP to accomplish this.
The Bighorn Solar project was made possible by hard work, innovative ideas, and a passion to renewable energy.
EVRAZ STEEL PLANT HISTORY and BACKGROUND
Pueblo’s steel plant was established in 1881. It is rich in American industrial history.
Evraz Pueblo was the only western steel supplier during the 20th century. It played an important role in connecting people with goods in the Rockies and further west.
However, the mill’s steel production dropped dramatically. The United States began to import the majority of their steel, and the mill lost most of its rail manufacturing business.
Union Pacific Railroad was the mill’s biggest customer. It had previously purchased the bulk of its steel railroad from Evraz Pueblo. Union Pacific purchased its steel rail from a Japanese company in 2015. As a result, Pueblo’s mill Section232 imposed a 25% tariff upon steel imports in March 2018. This put an end to low-cost, foreign steel imports. Evraz North America was able to re-establish its Pueblo (and other) location by taking the trade action.
THE PROJECT: WHAT IS IT?
Evraz Rocky Mountain Steel can maintain predictable energy prices by using the Bighorn Solar project’s fixed-rate structure. It has a 20 year term. It allows approximately 1,600 of the mill’s employees to remain in Pueblo.
The project will house 750,000 solar panels spread over 1,800 acres. The Rocky Mountain Steel mill in Evraz will benefit from the 300 MW generated by this project.
Lightsource BP is the developer of this solar project, based in Bighorn (North Dakota). The solar project powers the world’s largest on-site steel plant and is also used by one customer.
Its development demanded a $285 million investment. Fortunately, Lightsource BP was able to rise to the occasion and raise the funds.
The solar panel array array will supply more than 90% of the required power for the steel mill, which will result in a reduction of about 500,000 tons of greenhouse gas emissions. This is equivalent to the emissions of more 92,000 vehicles that are fuel-powered, according to.
Solar power will be used to power the mill’s production of more than 1 billion pounds steel, which is then cut into 100-meter sections. (Think tens or millions). The rail sections are then joined by workers to make sticks measuring one-quarter mile in length. The sticks are then shipped across North America.
A solar-powered steel plant will also include an arced electrical furnace, which melts old scrap metal pieces for reuse. This is yet another example of how the companies are committed to sustainability.
Why is it important to power the steel industry with solar power?
Each ton of steel produced in 2018 resulted 1.85 tonnes of carbon dioxide. This means that the steel industry is responsible for approximately 8% of global carbon emissions.
With emissions that vast, it’s no wonder companies are seeking alternative, sustainable solutions. Evraz North America has updated its environmental strategy to decrease its total carbon emissions from steel production by 33% by 2030.
The new solar-powered plant will not only make electricity prices more predictable, but it also prevents the mill from moving to an area that has lower energy costs.
COLORADO’S CLEANENERGY GOALS
The Colorado Energy Plan states that the project will help Colorado achieve its goal of reducing overall state pollution. The solar-powered mill will send 55% of its Renewable Energy to Colorado’s grid by 2026, and reduce Colorado’s carbon emissions by 60%.
Despite not meeting Xcel Energy’s goal to deliver 100% carbon-free electricity in 2050, this is still a significant step for industries.