Nucor Steel Going Nuclear
Nucor Steel Going Nuclear
Excerpt from NuScale Press News:
PORTLAND, Ore. – NuScale Power Corporation (NYSE: SMR) and Nucor Corporation (Nucor) today announced the two companies have signed a Memorandum of Understanding (MOU) to explore co-locating NuScale’s VOYGR™ small modular nuclear reactor (SMR) power plants to provide clean, reliable baseload electricity to Nucor’s scrap-based Electric Arc Furnace (EAF) steel mills. The companies will also explore an expanded manufacturing partnership through which Nucor, the largest steel producer and recycler of any type of material in North America, would supply Econiq™, its net-zero steel products, for NuScale projects.
As part of the MOU, the companies will evaluate site suitability, transmission interconnection capabilities and capital costs for potential NuScale plants to be sited near and provide carbon free electricity to Nucor EAF steel mills. In addition, NuScale will study the feasibility of siting a manufacturing facility for NuScale Power Modules™ near a Nucor facility.
Above Graphic is from NuScale Media Center
NuScale’s VOYGR power plants, which can be scaled in different plant configurations to produce up to 924 MWe of output, are well-suited for industrial applications as a highly reliable source of carbon-free energy. As the first and only SMR design to be approved and certified by the U.S. Nuclear Regulatory Commission, NuScale’s VOYGR plants include fully passive safety features which eliminate the need for an external grid connection to perform key safety functions and can achieve a site boundary Emergency Planning Zone, improving plant siting flexibility for industrial users like Nucor.
“NuScale is thrilled to take this step forward with Nucor, a company that shares our commitment to sustainability and deeply understands the role of NuScale’s technology in delivering clean, reliable baseload power to support the global energy transition,” said John Hopkins, NuScale President and Chief Executive Officer. “We look forward to determining how our SMR technology can best serve Nucor’s sophisticated steelmaking operations and how our companies can work together to drive a more sustainable future."
Good for Nucor.
What an appropriate time for Nucor Steel to be exploring alternative sources of electric supply. Grid reliability is going down and power prices keep going up. The 2023 Summer Reliability Report from the North American Electric Reliability Corporation (NERC) warns of serious reliability issues (i.e., potential blackouts) for two thirds of the country if we have a hot summer / fall. See my recent post Chaotic Christmas for the Grid (2022) for little-known details of serious grid problems that recently happened over that holiday weekend.
They appear to be looking for ways to be more self-sufficient, reduce their operational risks and have better control over their long term energy costs and environmental impact.
Good for You.
You can do something very similar, but without the need to buy a somewhat expensive small nuclear reactor...
Keeping The Lights On
Today, generator(s) can automatically start up if you lose power. They disconnect from the grid and can run for days, weeks (or more), during emergencies. Your operations continue, as usual. Power comes back and you are automatically reconnected to the grid.
You can have your own long-lasting power supply for emergencies. You can even use the equipment to avoid high power prices during peak periods, etc. Operating at night to avoid high power prices during the day? You can get back to running during the day by using your generators for the power you need, helping to ease staffing issues.
Onsite electric generation systems are getting more popular.
Gone are the days of smelly, noisy diesel generators. Modern generators can use clean burning natural gas, propane or renewable natural gas (biogas), meeting the strictest emissions in the country. The use of biogas can help you achieve net-zero carbon emissions levels.
Generators are available for virtually any size company. Nucor could choose from a variety of offerings today that could easily handle their load requirements, but they are investing in a promising future technology.
Capital Expense versus Operating Expense
Yes, generation equipment can be expensive - if you want it on your books as an asset. That may be your preference - to maximize your savings when it has been paid off. However, there are new options if you don't want to buy and operate the equipment.
Some companies now offer onsite generation equipment for no capital outlay. They buy the equipment, install and run it. Such agreements are often called energy-as-a-service and any associated costs can be treated as operating expenses by you. They also offer maintenance and operating support services.
Affordable options are available for you today. We offer free, no-obligation quotes for your specific requirements. Contact us to review your needs and answer any questions you may have.
Reduce your risk from an increasingly unreliable grid.