Arkansas-based Hybar, a newly formed company, announced today that it successfully raised $700 million of debt and equity financing to build, start up and operate a technologically advanced, environmentally sustainable scrap metal recycling steel rebar mill.
In a press release, the company said the equity portion of the financing was led by TPG Rise Climate, the dedicated climate investing strategy of TPG's global impact investing platform TPG Rise, and Global Principal Partners, the investment entity used by Hybar's senior management team.
Hybar said that of the $700 million raised, $470 million will be spent to build the rebar mill. The remainder of the financing will be used to start up and operate the mill and pay certain debt service costs during construction. The mill, which is expected to take 22 months to construct, is being built in northeast Arkansas on a 1,300-acre greenfield site with direct access to barge, rail and truck transportation options.
The mill will produce a full complement of high-yielding rebar that will primarily be used in large infrastructure projects, including projects supported by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
Hybar's mill technology, including the water treatment facility, is being supplied by SMS group. The substation is being supplied by Primetals Technologies. Hybar said its technology is designed to “significantly reduce the amount of energy needed to produce rebar, especially when compared to other rebar mills in North America, many of which were built more than thirty years ago.”
Hybar said its technology will also greatly limit greenhouse gas emissions, expecting emissions to be the lowest among all North American steel producers, and likely the lowest in the world's steel making community.
Hybar's mill will be directly connected to an adjacent solar facility, which the company said will allow them to know with certainty that during certain periods of the day the electricity being used to run the mill is being generated from 100% renewable sources. The company said no other steel mill in North America is directly connected to a solar field that can supply 100% of its power needs. Hybar also has a special rate power contract with Entergy Arkansas, under which Hybar will be able to buy electrical power to supplement the adjacent solar generated power when needed.
Hybar plans to produce 630,000 tons of rebar annually with approximately 154 employees (4,090 tons of rebar production per year per employee). The 154-employee figure includes all employees, not just operating employees.