As North America's largest recycler, steelmaker Nucor (NUE -0.07%) knows that sustainability is good for citizens, as well as stakeholders. The company has been growing its use of renewable energy to power portions of its operations, and expanding generation capacity in areas like solar power is also good for Nucor's business.
To that end, Nucor and Array Technologies (ARRY 5.78%), one of the world's largest manufacturers of ground-mounting systems used in solar energy projects, announced a supply agreement yesterday that aims to benefit both companies.
Nucor already supplies various products to the solar industry. Last year, the company said orders for products in the renewable sector had already exceeded the 2019 volume by 15% just through September 2020. And new investment growth projects are being geared toward growing the business. In announcing a new tube mill project in March, Nucor said, "The Kentucky location puts the new tube mill near expanding solar markets in the U.S."
Nucor has also taken steps to lower the carbon footprint from its steelmaking operations. It has constructed a new rebar micro mill in Sedalia, Missouri, which will receive contracted power from a nearby wind farm from a 10-year contract with Evergy, its energy provider in that part of the Midwest. Nucor's participation will allow it to receive renewable-energy credits to offset its carbon emissions.
Under the new agreement with Array, Nucor will supply the solar company with torque tubes and rolled steel, which are needed for Array's production of several parts and components used in its solar systems. Nucor COO Dave Sumoski said in a statement, "Both Nucor and Array recognize that the transition to a clean energy future begins at home, and we're honored to be both a supplier and a customer for the U.S. solar energy industry."