Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Gerdau Long Steel North America (Gerdau) is developing one of the largest solar facilities in the country to power its Midlothian steel mill in Texas.


Gerdau and 174 Power Global have entered into a 20-year Power Purchase Agreement (PPA) to develop these facilities, which will not only save costs for the steel mill’s operations in the region, but also create environmental benefits.

Steel mills are facing cost management decisions in the face of weaker steel demand that is forecasted to continue into 2022. Gerdau expects the lower overhead from these facilities could benefit its operational cost structure. 


Construction on the Gerdau Solar facility could begin by the end of 2020 and will be completed at the end of 2021. The project construction, which will utilize Gerdau’s solar beam pilings, will create 200 jobs. 


The solar panel use will also offset emissions and generate $19mn in tax revenue locally over the project’s life.

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