In a statement, Nucor said the agreement is a first for itself and the largest of its kind in the steel industry.  

"Nucor is one of the most efficient and cleanest steel producers in the world, and we are always looking for ways to reduce our carbon footprint. That is why we are proud to make our production process even cleaner by supporting the development of this solar energy project," said Nucor president and chief executive Leon Topalian.

"We are already North America's largest recycler, and supporting the addition of more clean power to the regional grid via this agreement further demonstrates Nucor's commitment to sustainable steelmaking."

A virtual power purchase agreement is a financial transaction, one that exchanges a fixed-price cash flow for a variable-priced cash flow and renewable energy certificates, according to the Rocky Mountain Institute.  

Under the 15-year agreement with EDF Renewables North America, Nucor will be supporting a project that is set to begin producing power in 2023. Once completed, the expected annual output of the solar facility will be the equivalent of the electricity consumed by nearly 50,000 average Texas homes.

"EDF Renewables is pleased to partner with Nucor and help them with their sustainability initiatives in a cost-effective manner," said Ryan Pfaff, executive vice president for grid-scale power at EDF Renewables. 

"Nucor's decision to procure solar energy allows this project to move forward into construction, which will provide an economic boost to the local economy through new construction jobs and expanded tax base."