Steel company US Steel receives green financing for Big River 2 plant
Arkansas Development Finance Authority Environmental Improvement Revenue Bonds total $290 million and are intended to be used for “qualifying green projects,” according to a statement from the Pittsburgh-based steelmaker.
US Steel will use the proceeds to “partially fund work related to its solid waste disposal facilities, including two electric arc furnaces and other equipment and facilities at […] Big River 2,” the company said.
“Friday’s closing of the Green Bonds reinforces our commitment to meeting our 2030 greenhouse gas emissions intensity reduction and 2050 net-zero emissions targets,” said David B. Burritt, President and CEO. management of US Steel.
The green bonds have a coupon rate of 5.45% and carry a final maturity of 2052. Under the agreement with the Arkansas bond issuer, US Steel will pay semi-annual interest.
Construction of Big River 2, near Osceola, Arkansas, is expected to be completed in 2024 with an annual capacity of 3 million tons. The plant is expected to operate with up to 70-80% fewer greenhouse gas emissions than traditional blast furnaces.
US Steel separately repurchased about $300 million in outstanding debt last week, the company noted in the same statement.