30 Sep 2019 10:06

Evraz to build solar power plant in Pueblo for rail project

MOSCOW. Sept 30 (Interfax) - Evraz North America, a subsidiary of Russian steel and mining group Evraz, has reached an agreement to build a 240 MW solar power plant in Pueblo, Colorado with energy trader Xcel Energy and Lightsource BP, Evraz said in a press relese.

"This innovative agreement makes possible Evraz North America's planned long-term investment [in a new rail mill] in Colorado, while supporting the goals of Xcel Energy's partners and community," Evraz said.

The cost of the power plant, which is expected to go into operation at the end of 2021, is estimated at $250 million. The plant will be located on Evraz Rocky Mountain Steel property in Pueblo, making it the largest on-site solar facility dedicated to a single customer in the country, Evraz said.

Evraz and Xcel Energy agreed in 2018 to work out a long-term power supply contract for the period to 2041. The electricity will be supplied at fixed rates for 20 years from the start of the contract.

Evraz announced a year ago that it planned to modernize and build facilities in Pueblo to manufacture rail products. The company plans to build a new line to produce 100-meter railroad rails. The company estimated the cost of the project at $480 million.

The facilities, with capacity to produce 600,000 tonnes per year, are scheduled to open in the fourth quarter of 2019.

The plant now makes 25-meter rails and has capacity to produce 530,000 tonnes per year.