Nestled in the Colorado Rockies, the Bighorn Solar Project is now home to the world’s largest solar-powered steel plant. This initiative, aimed at reducing emissions in the carbon-heavy steel industry, is a remarkable achievement for Evraz Rocky Mountain Steel, owned by Evraz North America, based in Chicago.
In partnership with Xcel Energy and Lightsource BP, Evraz began developing this groundbreaking facility in 2019, demonstrating a commitment to renewable energy through innovative strategies and hard work.
History and Background of Evraz Steel Plant
Founded in 1881, the steel mill in Pueblo boasts a rich history in American industrial development. As the sole steel supplier in the western U.S. during the early 20th century, Evraz Pueblo played a critical role in connecting communities and transporting goods across the Rockies and beyond.
However, the mill faced significant challenges as domestic steel production declined, with the U.S. increasingly relying on imports. A pivotal moment occurred in 2015 when Union Pacific Railroad, a significant customer, shifted its steel purchases to a Japanese company, leading to a staggering 70% reduction in the mill’s business.
The situation worsened due to unfair steel pricing from foreign imports, impacting local workers and businesses. In March 2018, the introduction of a 25% tariff on steel imports under Section 232 helped address this issue, enabling Evraz North America to stabilize operations at the Pueblo mill.
Project Overview
The Bighorn Solar Project employs a fixed-rate structure over 20 years, providing Evraz Rocky Mountain Steel with predictable energy costs while retaining approximately 1,600 jobs in the Pueblo area. This ambitious project encompasses 750,000 solar panels distributed across 1,800 acres, aiming to produce 300 MW of energy for the mill.
Developed by Lightsource BP from Bighorn, North Dakota, this project not only powers the most sustainable steel plant globally but is also the largest single-customer on-site solar facility in the U.S. The $285 million investment required for the project drew financial support from Lightsource BP and other investors.
Once operational, the solar array will supply over 90% of the steel mill’s energy needs, significantly reducing greenhouse gas emissions by approximately 500,000 metric tons—equivalent to the emissions from over 92,000 gasoline-powered vehicles.
The solar-powered plant will also incorporate an arced electric furnace designed to melt and repurpose old scrap metal, further demonstrating the commitment to sustainable practices.
Importance of Solar Power in the Steel Industry
In 2018, producing one ton of steel resulted in about 1.85 tons of carbon dioxide, making the steel industry responsible for roughly 8% of global carbon emissions. This substantial impact has driven companies like Evraz North America to seek sustainable alternatives, with a goal to reduce total greenhouse gas emissions from steel production by 33% by 2030.
The new solar-powered facility not only stabilizes electricity costs but also prevents the need to relocate steel production to areas with cheaper energy options.
Colorado’s Clean Energy Goals
According to the Colorado Energy Plan, this project aligns with the state’s commitment to reducing overall pollution levels. The solar-powered mill is projected to contribute 55% of its renewable energy to the grid by 2026 and aims to cut its carbon emissions by 60%.
While this initiative may not meet Xcel Energy’s long-term goal of 100% carbon-free electricity by 2050, it represents vital progress toward a sustainable energy future.