Solar power to supply Hybar's Arkansas rebar mill

GCP will initially supply behind-the-meter renewable electricity to Hybar’s adjacent mill that also is under construction and due to begin operations next summer. The company said it will supply about 40% of the mill’s annual power consumption.

This solar power is meant to augment Hybar’s existing agreement with Entergy Arkansas for the supply of grid power.

“Unlike other industrial businesses which seek to invest in renewable power generation projects hundreds of miles away from their closest operation as a means of carbon offsetting, GCP’s production of solar and renewable-stored energy will be directly connected to Hybar,” Ari Levy, partner at Global Principal Partners and CFO of both GCP and Hybar, said in a statement.

“To our knowledge, this will be the first renewable power installation in the industry to provide a steelmaking facility with solar-generated electricity on a behind-the-meter basis,” Levy added.

In August, Hybar CEO David Stickler told the SMU Steel Summit audience that the company is focused on supplying the US market with environmentally friendly rebar. Hybar’s initial plan had called for constructing two rebar mills. Stickler said the scope has grown, with the goal now being “three or four bar mills,” and then possibly a flat-rolled steel mill.

GCP said it is applying for interconnection with the Midcontinent Independent System Operator (MISO) grid system. That process will likely take three years, GCP said.

KfW IPEX-Bank provided about $165 million in construction debt financing with Aurora Energy Research serving as its market adviser. The Arkansas Teacher Retirement System provided an additional $100 million in a takeout financing commitment.