The GCP facility is based Osceola, Arkansas and once operational, will supply behind-the-meter renewable power to its sister company, Hybar LLC, an adjacent scrap metal recycling steel rebar mill currently under construction.
Once complete, Hybar will produce high-yielding rebar primarily to be used in large infrastructure projects. GCP is expected to supply Hybar with approximately 40% of its total annual power consumption when both entities are brought online in 2025.
Key contributors to the project financing were, KfW IPEX-Bank providing approximately $165 million in construction debt financing, and the Arkansas Teacher Retirement System providing an additional $100 million in a takeout financing commitment.
Dr Velibor Marjanovic, member of the Management Board of KfW IPEX-Bank, commented in a statement: “The sustainable production and recycling of steel plays a key role in global decarbonisation. After providing financing for the Hybar rebar mill in 2023, we’re delighted to now support the clean power supply for this flagship project…”
Ari Levy, partner at Global Principal Partners and CFO of both GCP and Hybar added: “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. 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.”
GCP will initiate its application for interconnection with the Midcontinent Independent System Operator (MISO) grid system. It is anticipated that obtaining this interconnection will take three years and once connected to the grid, GCP will be able to provide its solar-generated and battery-stored power for sale to third party customers.
