Nucor Signs Agreement with NextEra Energy Resources to Support Solar Energy Development in Kentucky

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Aug 07, 2023, 15:48 ET

CHARLOTTE, N.C., Aug. 7, 2023 /PRNewswire/ -- Today, Nucor Corporation (NYSE: NUE) announced a Power Purchase Agreement (PPA) for 250 megawatts of renewable energy from Sebree Solar, LLC, a subsidiary of NextEra Energy Resources, LLC. Sebree Solar is an innovative two-phase solar project in Henderson County, Kentucky, which will have a capacity of up to 400 megawatts of American-produced energy. The project's first phase – Sebree Solar I – is set to begin construction in Fall 2023.

"Nucor's success in Kentucky has grown significantly in recent years, with major new investments and jobs helping to expand the reach of its steel products," said Kentucky Governor Andy Beshear. "Whether it's electric vehicles or cutting-edge metals manufacturing, Kentucky is emerging as a national leader in creating the jobs of the future. I look forward to Nucor's continued success here and am happy to welcome NextEra Energy Resources to the commonwealth for what we hope will be another long and prosperous relationship."

The steel for Sebree Solar I will be sourced from Nucor Steel Gallatin in Ghent, Kentucky. Steel from Nucor Steel Gallatin will also be used for another solar project to be built and operated by a subsidiary of NextEra Energy Resources, Green River Solar, in Meade and Breckinridge counties. The Green River Solar project will generate up to 200 megawatts of electricity. The Kentucky-produced steel will be used for the racking system which supports the projects' solar panels.

"We are delighted to work with NextEra Energy Resources, and to be a key material supplier to this important addition to the power grid in Kentucky where we have grown our presence considerably in recent years," said Greg Murphy, Executive Vice President of Business Services and General Counsel at Nucor Corporation. "Our country's energy transition will be built with steel and the steel it is built with should be produced sustainably. And while Nucor is already among the world's cleanest and most sustainable steel producers, this agreement will enable us to further reduce our climate footprint and meet our goals for improvement."

Sebree Solar I is anticipated to begin commercial operation in December 2025. Over its 30-year lifespan, it will contribute approximately $20 million in additional tax revenue to Henderson County, which can be used for roads, schools, and other public services.

"I applaud Nucor and NextEra Energy Resources for collaborating on this huge investment in Kentucky. This project will unleash a wave of workforce development in western Kentucky, benefiting countless families by expanding job opportunities. By collaborating with companies like Nucor and NextEra Energy Resources, Kentucky will continue to be a leader in transformative projects that strengthen our economy and establish us as a prominent force in steel manufacturing and energy production throughout North America," said Kentucky Senate President Robert Stivers. "As a state committed to prioritizing our residents' energy security, I appreciate the benefits of projects that are designed to generate energy that will be placed on our electric energy grid. This project is an example of two companies that are making substantial financial commitments and contributions to Kentucky by using Kentucky products made by Kentucky workers. I look forward to seeing the benefits for Kentucky residents in the years to come."

This announced PPA advances Nucor's broader sustainability strategy and complements a wind-powered PPA that Nucor entered into in 2021. Nucor has agreed to off-take a total of 350 megawatts of carbon-free electricity through these two PPAs, enough to provide sufficient power to approximately 100,000 U.S. households annually.

"We are pleased to work with Nucor to help them achieve their sustainability goals. This solar energy project will generate low-cost, homegrown energy and provide millions of dollars in additional tax revenue to Henderson County over the life of the project," said Rebecca Kujawa, president and CEO of NextEra Energy Resources, the world's largest generator of wind and solar energy, and a world leader in battery storage. "Constructing our project from steel made sustainably and locally will help drive economic development in Kentucky."

"This is great news for our commonwealth. The agreement between NextEra Energy Resources and Nucor brings together two great corporate citizens in what promises to be a connection that will benefit this region and the commonwealth," said Kentucky House Speaker David Osborne. "The construction of Sebree will lead to substantial orders for Nucor's Ghent facility and millions of megawatt hours of Kentucky-generated solar energy added to our electricity grid. I appreciate the leadership that made this deal possible and look forward to seeing the positive impact it will have for generations."

About Nucor
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 racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. Nucor, through The David J. Joseph Company and its affiliates, 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.

Forward-Looking Statements
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words "anticipate," "believe," "expect," "intend," "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 general market conditions, and in particular, prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) 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; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate businesses we acquire; and (15) the impact of the COVID-19 pandemic, any variants of the virus, and any other similar pandemic or public health situation. These and other factors are discussed in Nucor's regulatory filings with the United States 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, 2022. 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.

SOURCE Nucor Corporation