On Wednesday, energy major bp announced that the solar energy development venture it operates with Lightsource (Lightsource bp), together with Midwest utilities giant Xcel and the North American subsidiary of U.K. steelmaker EVRAZ, has formally launched the Bighorn Solar project. Located in Pueblo, Colorado, at the site of EVRAZ Rocky Mountain Steel facility, Bighorn Solar represents world’s first steel mill to be powered mostly by solar energy. It is also the largest on-site solar facility in the U.S. dedicated to a single customer, with more than 750,000 solar panels providing nearly all of the plant’s yearly electricity demand.
Bighorn Solar is currently generating electricity into the grid and is expected to come fully online next month. Lightsource bp financed, owns and operates Bighorn Solar and sells the electricity it generates to Xcel Energy under a 20-year power purchase agreement. As part of that arrangement, EVRAZ will receive clean, renewable power and price certainty from Xcel Energy through 2041. The project will enable Xcel Energy to abate 433,770 metric tons of CO2 emissions, the equivalent of taking 92,100 fuel-burning cars off the road each year.
EVRAZ North America is already Xcel Energy’s largest retail electric customer in Colorado and one of Pueblo’s largest employers. According to the companies, the deal for fixed-rate power gives EVRAZ the low, predictable electricity prices it needs to stay in Pueblo and invest in its future there, keeping more than 1,000 jobs in the local community.
According to bp, besides enabling the EVRAZ Pueblo plant to product some of the world’s “greenest” steel, the facility is already recycling scrap metal to make new steel products, notably sustainable rail.
“This project proves that even hard-to-abate sectors like steel can be decarbonized when companies come together with innovative solutions,” said Kevin Smith, CEO of Lightsource bp Americas . Our collaboration with Xcel Energy and EVRAZ North America made Bighorn Solar a reality. It’s a great example of partners tackling complex issues that US industry is facing today, while at the same time preserving jobs in the manufacturing sector.”
“Bighorn Solar shows us what the future of American energy can look like,” said Dave Lawler, chairman and president of bp America. “Renewable energy can create a more sustainable, competitive business. Projects like this can make companies more resilient and protect jobs through the energy transition. And it’s another example of how bp is working to help the US and the world reach net zero by 2050.”
“Like bp and Xcel Energy, EVRAZ is committed to reducing emissions and operating more sustainably,” added EVRAZ North America CEO Skip Herald. “As each new acre of solar panels is installed, we find ourselves closer to our goal of making EVRAZ in Pueblo one of the greenest steel facilities in the world. The journey shows what can happen when like-minded companies come together and work across government and industry to promote cleaner energy, cleaner products and more resilient communities. This is an incredible milestone.”
“This is an exciting day for us at Xcel Energy,” said Xcel Energy President and CEO Bob Frenzel. “Working together with Lightsource bp and EVRAZ North America, we’re creating innovative solutions for our customers while developing new solar energy resources in Colorado. Through this collaboration we’re bringing jobs to the community, harnessing our natural resources and increasing renewable energy in the state.”
