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Pacific Steel Group has initiated the development of what it refers to as its Mojave Micro Mill. Situated in the Mojave Desert area of California, southeast of Bakersfield and in proximity to Edwards Air Force Base, the facility will manufacture rebar — the metal framework essential for contemporary concrete constructions — utilizing electricity generated from nearby solar panels and wind turbines. By employing hybrid mill technology alongside a renewable energy strategy within a distinct Micro Mill framework, the Mojave Micro Mill is anticipated to rank among the most environmentally friendly steel mills globally, according to the company.
The solar-fueled steel mill is set to utilize cutting-edge steel manufacturing technology for producing its rebar offerings. This approach will not only yield superior products in a more eco-friendly manner but also significantly minimize the mill’s ecological footprint. Upon reaching its full operational capacity in 2027, the Mojave Micro Mill will boast an annual output of 450,000 tons of rebar steel. The positive aspect here is that the process employed will prevent approximately 370,000 tons of greenhouse gases from entering the atmosphere. To provide context, this is akin to the emissions generated by around 75,000 vehicles or 783,000 barrels of oil.
Furthermore, the Mojave Micro Mill is expected to introduce numerous job opportunities to the region and will repurpose nearly half a million tons of scrap metal sourced locally within California each year. At present, that scrap steel is transported out of state, contributing to additional carbon emissions. The new establishment is not designed to act as merely a public relations campaign. Pacific Steel would not pursue this initiative if it did not prove to be financially viable.
Development of the Mojave Micro Mill Took Years
Eric Benson, CEO of Pacific Steel Group, shared with Fast Company that the company began considering a new production site a few years back. Given that electricity prices remain one of the most significant costs in the steel manufacturing process, Benson and his team contemplated whether a steel mill could be situated alongside solar farms. Due to its isolated location in the high desert and the abundance of available land, the 174-acre Mojave Micro site will feature 63 acres allocated to solar panels, batteries, and wind turbines to furnish the factory with the necessary power for operations. Moreover, the company will not be exposed to electricity price hikes as it would be if it relied solely on the utility grid.
While there will be a connection to the local utility grid, Pacific Steel has also addressed that concern by installing a carbon capture system for instances when it operates on grid power, helping to counterbalance the carbon emissions linked with electricity from thermal generation. Benson anticipates the plant will run all of its electric arc furnaces on its own energy 85 percent of the time.
“This is an incredibly thrilling day for our company. It marks the culmination of nearly five years of effort and serves as the first concrete step toward complete vertical integration of our reinforcing steel operations,” Benson stated in an official company announcement regarding the occasion, as reported by the Antelope Valley Press. “I could not feel prouder of the team we’ve assembled. Their joint efforts in reaching this milestone is genuinely an outstanding achievement.”
Sustainable Business Practices Are Profitable
The financial sector may be distancing itself from sustainability initiatives rapidly to avoid scrutiny from the current US administration, yet Pacific Steel is incorporating the most advanced technology available to make its new rebar mill as environmentally sound as possible. In terms of emissions released into the atmosphere, it will implement a variety of strategies aimed at minimizing those emissions, including:
- Fully enclosed Meltshop
- NOx management through selective non-catalytic reduction (SNCR)
- Two baghouses in tandem
- Wet scrubber
- Activated carbon injection
- Carbon capture system with liquefaction
- Heat recovery/exchangers.
This meticulous attention to detail garnered praise from Liane Randolph, chairperson of the California Air Resources Board. “Pacific Steel Group’s Mojave Micro Mill exemplifies the California approach to sustainable manufacturing. This initiative is establishing a benchmark for the steel sector by harnessing on-site renewable energy to produce eco-friendly rebar with a significantly lower carbon footprint,” she remarked.
“It serves as a brilliant illustration of how California continues to set the standard for promoting sustainable innovation, and we are proud to witness this pioneering project unfold right here within our state.”
The state of California has also actively supported the realization of this project. Last year, the initiative received a $30 million California Competes tax credit from the Governor’s Office of Business and Economic Development (GO-Biz), which was instrumental in the groundbreaking and has facilitated Pacific Steel in hiring new employees and investing in manufacturing equipment. In exchange for this tax incentive, the company committed to more than $540 million in capital investments and nearly 450 new jobs during the mill’s initial five years of operation. Pacific Steel is also collaborating with California State University, Bakersfield, Kern Community College District, and Antelope Valley Community College to create pathways to employment, including a certificate program to prepare students for careers in steel manufacturing.
California Governor Gavin Newsom remarked in a statement, “Projects like the Mojave Micro Mill demonstrate how we can develop our regional economies while simultaneously addressing climate change and enhancing public health — all key components of California Jobs First. In California, we are heavily investing in innovative technologies to generate jobs and ensure our infrastructure, such as roads, bridges, and hospitals, are constructed with cleaner materials made locally in California.” The Golden State now boasts seven times more clean energy jobs compared to fossil fuel jobs and continues to lead the nation in clean energy employment. With over half a million clean energy jobs within the state — which is double the amount in Texas — it is intensifying efforts to create even more environmentally conscious job opportunities.
This news yields several potential insights. First and foremost, sustainable business practices are beneficial for profitability. Pacific Steel is not engaging in this as a part of some “green new charade”; rather, it is pursuing this path because it is economically advantageous. Secondly, if a steel mill can operate using renewable energy most of the time, then data centers and green hydrogen ventures can do so as well. There are numerous indicators for the business community stemming from the Mojave Micro Mill project that signify sustainability and business can coexist as essential allies in building a sustainable future.
A nod of appreciation to Dan Allard.
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