United States Steel Corporation (U.S. Steel), based in Pittsburgh, announced last week the closing of $63.4 million in Environmental Improvement Revenue Bonds with a green bond designation issued through the Industrial Development Board of the City of Hoover, Ala.
U.S. Steel stated that proceeds from the green bonds will partially fund work related to the company’s new environmentally preferred, low-emission electric arc furnace (EAF) at its Fairfield Works in Fairfield, Ala.
“Our first green bond is an important step forward for U. S. Steel in our drive toward more sustainable practices,” said U. S. Steel President and Chief Executive Officer David B. Burritt. “This is doubly relevant for our new electric arc furnace, which recycles scrap steel as its primary feedstock and uses electricity for power.”
The green bonds have a coupon of 6.375 percent and mature in 2050. Under its agreement with the Alabama bond issuers, U.S. Steel will pay the semiannual interest and repay the principal upon maturity.
“By partially funding the electric arc furnace, the green bond is helping advance our commitment to reduce greenhouse gas emissions intensity by 20 percent by 2030.”
U.S. Steel launched its new EAF steelmaking facility at the end of October. The EAF method of steelmaking utilizes electrical energy to melt a heat of steel. This process charges recycled steel scrap into the furnace, which is then heated by electric arcs; melting the scrap into liquid steel.
The EAF is expected to have an annual steelmaking capacity of 1.6 million tons.
“The EAF significantly enhances our ability to deliver customer-centric solutions and results,” Burritt said at the time of the launch. “This successful start-up delivers on that promise, and I am very pleased with the way our people safely accomplished this while navigating the disruptive influences of the COVID-19 pandemic.”