174 Power Global, a California-based renewable energy developer and an affiliate of Hanwha Group, has signed a power purchase agreement (PPA) with steel producer Gerdau Long Steel North America, to sell power from an 80MW solar facility in Texas.

As per the agreement, 174 Power Global will sell the power from behind-the-meter (BTM) solar facility to Gerdau for a 20-year term.

The solar facility will be powered by over 230,000 PV panels

The solar facility will be located adjacent to the Gerdau Midlothian Steel Mill in Midlothian, Texas and will be powered by more than 231,000 solar panels, sitting on over 70 acres of land.

Construction of the solar facility is expected to begin by the end of this year and could be completed by the end of next year.

174 Power Global president Henry Yun said: “174 Power Global is pleased to enter into this partnership with Gerdau, one of the world’s most environmentally responsible steel producers, as we continue to develop our solar generation footprint and behind-the-meter projects in Texas.

“We look forward to breaking ground on the construction of this important and innovative project and continuing to provide clean energy solutions to the state.”

The clean electricity from the plant will directly power the Midlothian steel mill, offering low cost energy consumption benefits to the steel producer.

Gerdau has agreed to provide solar beam pilings for the solar facility, which is expected to offset the emissions of more than 13,000 average Texas households.

During its construction phase, it will create more than 200 temporary jobs and generate $19m in tax revenue for the country for the next 30 years.

Gerdau Long Steel North America president Chia Yuan Wang said: “Gerdau has a culture of sustainability. The products from our Midlothian facility are already made from 100% recycled scrap metal. Developing and utilizing green energy is an innovative way to further enhance our environmental contributions.”

Last September, 174 Power Global completed its Imeson Solar, a 9MW solar plus battery storage system (BESS) facility in Jacksonville, Florida.

Local utility Jacksonville Electric Authority (JEA) has agreed to purchase power from the facility for the next 25 years.