SEEIT acquired a 50% interest in Primary Energy in 2020. Primary Energy provides essential energy services to two of the most efficient and advanced steel mills in the United States owned by Arcelor Mittal And US Steel.
The project provides electricity and steam to the steel blast furnaces and is designed to be reliable and can be available up to 24 hours a day. The energy is generated by utilising waste heat and gas from the steel mills or natural gas, which is supplied to a highly efficient combined heat and power system. The portfolio has a combined electrical generating capacity of ~300 MW and a combined steam generating capacity of ~2,200 Mlb/h.
Primary Energy also benefits from a project development pipeline involving recycled energy and energy efficiency projects with industrial clients, in which SEEIT may have the opportunity to participate.
Primary Energy generates low-cost, more efficient energy for the off takers compared to alternative energy sources and is fully integrated into the steel plants. In addition to supplying energy, Primary Energy is the sole provider of fuel handling and emissions control equipment – these are critical elements in for the operations of the operation of the steel mills. The strong environmental benefits of the assets mean that they qualify annually for Renewable Energy Certificates (RECs), which are equivalent to those generated by 536 MW of solar or 374 MW of wind projects. In addition, the project delivers substantial cost savings versus the electrical grid.
Steel mills are one of the largest energy users in the US and this project demonstrates how waste energy can deliver cheaper, cleaner and more reliable infrastructure solutions to a key manufacturing sector.