Yahoo Finance Nucor's (NUE) Elcyon to Aid Offshore Wind Energy Applications
Nucor Corporation NUE introduced Elcyon, a sustainable heavy gauge steel plate product to address the increasing demand for America’s offshore wind energy producers. This product will be manufactured at Nucor’s $1.7 billion state-of-the-art Brandenburg steel mill at Kentucky. Elcyon has large plate dimensions, improved weldability and excellent toughness when compared to its competing products.
Nucor is pursuing certification under LEED v4, which is regarded as the highest standard for sustainable building design, construction and operation, from the U.S. Green Building Council for its Brandenburg steel plant. This has made the Brandenburg steel plant the world’s first steel plant to seek this certification. The steel plant has the capacity to produce 1.2 million tons of steel annually. The new mill is located at the largest steel plate consuming region of the country, strategically placing it to meet domestic demand for plate products.
The company is using its recycled scrap-based electric arc furnace to manufacture Elcyon, which is a clean and advanced steel product. This steel making process has greenhouse gas emissions intensity of about one-fifth of the global blast furnace steel making average based on scope 1 and 2 emissions. To meet the need for precise quality standards of offshore wind energy designers, manufacturers and fabricators, Nucor utilizes thermo-mechanical controlled processing (TMCP) at the new mill to manufacture Elcyon, which is a one-of-a-kind steel product made in the United States.
The passage of the Inflation Reduction Act, which includes a $300 million investment for clean energy development and climate programs, has aided the Biden Administration’s goal to construct 30 gigawatts of offshore wind power by 2030. Elcyon is seen as an important component of the supply chain to continue building America’s offshore wind power infrastructure.
Nucor has been the leader of sustainable steel production, and the launch of Elcyon and the Brandenburg mill has further elevated the company’s position. Nucor has been constantly working toward meeting demand of customers and other stakeholders as seen through the launch of Econiq last year, the world’s first net-zero steel available at scale, to becoming the first industrial company to join the United Nations 24/7 carbon-free energy global impact.
The company stated that Elcyon’s larger and thicker plates will help the United States become a leader in offshore wind production and meet rising demand for alternative energy sources. The company also stated that it will continue to invest and build recycled steel facilities to pursue a future of clean energy. The launch of Elcyon will be offered in a wide range of plate grades and sizes to meet the unique and specific needs of its end users.
NUE’s shares have gained 61% in the past year, outperforming industry’s growth of 22%.
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Nucor expects its earnings for the fourth quarter to be between $4.25 and $4.35 per share. This guidance suggests a decline on a sequential basis as well as from the year-ago quarter. Lower shipment volumes, lower average selling prices and seasonal factors are expected to have been headwinds for NUE’s steel mills segment in the fourth quarter. Nucor also said that economic uncertainties and concern for recession could put a dent on future steel demand.
Nucor Corporation Price and Consensus
Nucor Corporation price-consensus-chart | Nucor Corporation Quote
Zacks Rank & Key Picks
Nucor currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks to consider in the basic materials space include AngloGold Ashanti Limited AU, FMC Corporation FMC and Air Products and Chemicals, Inc. APD. AU carries a Zacks Rank #1, while FMC and APD both have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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