Building a Greener Future with Sustainable Steel Production
Pacific Steel Group (PSG), a leading rebar fabricator based in San Diego, California, has secured a $200 million loan from Generate Capital, a San Francisco-based sustainable infrastructure financier. This funding will enable PSG to construct a state-of-the-art recycled-content electric arc furnace (EAF) steel mill in Mojave, California, a project set to revolutionize sustainable steel production in the region.
The new EAF micromill is designed to transform locally sourced steel scrap into high-quality, custom-length steel rebar. The project aligns with California’s goals for sustainable infrastructure by significantly reducing emissions and cutting transportation costs associated with steel production.
A Transformative Investment for Decarbonization
Generate Capital’s President, Bill Sonneborn, emphasized the importance of this project, stating, “PSG’s innovative approach demonstrates how we can significantly reduce emissions in the industrial sector while meeting the rising demand for greener building materials economically.”
In addition to the loan from Generate Capital, co-investors include the California State Teachers’ Retirement System fund (CalSTRS) and Australia-based HESTA fund. These contributions highlight global interest in decarbonizing the steel industry, a critical step toward achieving net-zero emissions.
The new Mojave mill is projected to produce rebar with 85% fewer emissions compared to traditional methods, thanks to the integration of renewable energy, electrification, carbon capture, and a local supply chain. This efficiency eliminates the need for roundtrip hauling of scrap and finished steel, providing both economic and environmental benefits.
Setting New Benchmarks in Green Steel Production
The Mojave EAF mill will be the first steel mill to operate in California since the closure of the Rancho Cucamonga mill in 2019. PSG’s CEO, Eric Benson, noted the project's importance: “This innovative project aligns with our objective to provide the highest quality materials while lowering our environmental footprint. By eliminating unnecessary transport and utilizing cleaner production methods, we are creating rebar that not only meets our customers' high standards but also supports their sustainability goals.”
Generate Capital has a proven track record in supporting sustainable projects across six sectors, including industrial decarbonization. The company’s investment in PSG reinforces its commitment to sustainable development and positions the Mojave mill as a benchmark for eco-friendly steel production.
