Koch companies partnered with Hybar Steel on the first operational solar-powered steel mill in the United States
Over 24 months, DEPCOM Power and Koch Minerals & Trading (KM&T) supported Hybar in transforming a 1,300-acre greenfield site into a first-of-its-kind steel rebar mill with a utility-scale solar power plant and battery energy storage system.
“We had a shared vision and a shared alignment on goals and expectations. And I think that’s what helped drive the success of this project,” said Dan Oldenburg, director of project development engineering at DEPCOM. As part of Koch Engineered Solutions, DEPCOM brings development, engineering, procurement, construction operations and management capabilities to utility-scale solar and battery energy storage projects.
Hybar’s new mini mill in Osceola, Arkansas, will transform recycled steel scrap into as much as 700,000 tons of steel rebar per year using DEPCOM’s state-of-the-art solar power facility. Rebar is a critical structural component for reinforcing concrete that can be found in nearly every major infrastructure project, from bridges and highways to skyscrapers and power plants.
To meet the new mill's energy needs, DEPCOM engineered a first-of-its-kind 85 MW behind-the-meter (BTM) alternating current solar power facility. As a BTM source of power, the energy produced at the solar facility will feed directly into the plant, allowing Hybar to greatly reduce its reliance on electricity provided by its local utility partner.
“Steelmaking is notoriously energy intensive,” said Steven Blazek, vice president of business development at DEPCOM. “Taking this project from a proof of concept to reality is a game-changer for the industrial sector.”
Hybar steel rebar facility powered by DEPCOM Power solar panels.
The solar facility was customized to maximize Hybar’s uptime and provide as much power as possible to run the mill year-round, nonstop without drawing on supplemental sources. When the sun is shining, the mill will run entirely on solar energy. Its 80 MWh capacity battery energy storage system will provide enough electricity to operate the mill for approximately two hours when the sun is down.
To source the scrap steel, Hybar partnered with KM&T as its preferred partner. KM&T, a global leader in commodity markets, will provide quality control, proprietary market analytics, robust risk management and integrated logistics.
“From a KM&T investment standpoint, we really want to have an opportunity to improve the value that the Hybar facility will bring to society,” said Joe Hand, president of minerals at KM&T.
Koch companies have been involved with Hybar since the company’s founding, extending a previously successful partnership with Big River Steel. In 2023, KM&T participated as a minority stake investor in a $700 million debt and equity financing round for Hybar alongside TPG Rise Climate and Global Principal Partners.
“In addition to the investment return profile, we also have the ability to bring capability and potentially build a new commodity trading platform for minerals and trading in scrap metals," Hand added.
“Our partnership with Hybar is a great example of DEPCOM Power living our vision,” said Blazek. “We understood the challenge. We leveraged our engineering and project execution capability in partnership with KM&T to successfully deliver a mutually beneficial solution to the customer.”
