United States Steel Corporation has closed a deal on $240 million of unsecured environmental improvement revenue bonds in Arkansas. The funds will be used to support the construction of Big River 2, a steelmaking facility near Osceola. The bonds, issued by the Arkansas Development Finance Authority, have been designated as green bonds.
The Big River 2 facility, with an estimated cost of $3 billion, aims to reduce greenhouse gas emissions by 70-80% compared to traditional steel production. It will have a steelmaking capacity of 3 million tons and will employ advanced technology, including two electric arc furnaces, casting and rolling lines, and recycling capabilities. The facility will focus on processing scrap steel into finished products.
The International Energy Agency (IEA) emphasizes the importance of reducing traditional steel-making processes by up to 15% and increasing the use of electric arc furnaces by 5% to achieve global net-zero goals by 2030. Steel production is responsible for approximately 8% of global emissions. In line with this, the United States has seen initiatives to reduce the industry's environmental impact, such as exploring the use of small modular nuclear reactors to power electric arc furnaces.
This is not the first green bond issuance by U.S. Steel, as the company secured $290 million in green bonds in 2022. The newly issued bonds have a rate of 5.7% and a maturity date in 2053. Underwriters for the green bonds include Bank of America Securities, Fifth Third Securities, Truist Securities, Wells Fargo Securities, Barclays, Citigroup, Crews & Associates, Goldman Sachs, J.P. Morgan Securities, and Morgan Stanley.
The completion of Big River 2 is expected in 2024, and the facility will primarily produce steel for the automotive, construction, and appliance industries.
Yorumlar
Henüz yorum yapılmadı