Arizona industrial steel manufacturer to power electric arc furnace with solar and storage

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Ameresco announced it has achieved commercial operations for a 50 MW / 200 MWh battery energy storage system for Nucor, supporting its steel bar mill industrial operations.

The battery is the largest behind-the-meter storage system in Arizona and among the top five largest in the United States. The battery project is expected to help Nucor increase the output of its Kingman, Arizona steel bar mill production to 600,000 tons annually by powering the company’s new electric arc furnace.

The onsite battery will help stabilize the electric load from Nucor’s new arc furnace, reducing strain on the grid. By smoothing energy demand, it makes it easier for the utility to manage power fluctuations and boosts the use of renewable energy.

“The battery energy storage system at our Kingman mill is a site-specific solution developed in response to the unique grid that serves the plant operations and smooths out our energy demand,” said Matt Blitch, vice president and general manager at Nucor.

Construction of the project began in December 2024, featuring 58 Tesla Megapack 2XL units under a 20-year storage services agreement (SSA). The Ameresco-owned battery system was installed at a Nucor substation within Mohave Electric Cooperative’s territory and operated by Arizona Electric Power Cooperative (AEPCO), part of the Arizona G&T Cooperatives.

Ameresco is also expected to deliver a 25 MW solar project to pair with the battery storage system with commercial operations scheduled for 2026.

GreenFront Energy Partners advised Nucor on the contracting and structuring of solar and storage solutions at Kingman.

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