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Ameresco commissions 50 MW storage system for Nucor steel mill in Arizona

Ameresco has completed a 50 MW battery storage system to support Nucor’s expansion in Arizona, marking one of the largest behind-the-meter industrial projects in the United States.

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Ameresco Inc. has announced the commercial operation of a 50-megawatt (MW), 200-megawatt-hour (MWh) battery energy storage system (BESS) at Nucor’s industrial site in Kingman, Arizona. It is the largest behind-the-meter (BTM) project in the state and the fourth largest in the United States in this category. The project is designed to stabilise power consumption for a new electric arc furnace, part of the North American steelmaker’s production expansion.

A key project for the local industrial grid

The storage system uses 58 Tesla Megapack 2XL units and operates under a 20-year Storage Services Agreement. The asset is owned by Ameresco and was installed at a Nucor substation within the Mohave Electric Cooperative’s service territory. It is operated by Arizona Electric Power Cooperative (AEPCO), part of the Arizona G&T Cooperatives. The system will help smooth energy demand from the site, reducing peak loads on the local grid.

Construction began in December 2024. Nucor’s industrial site is undergoing a capacity expansion targeting 600,000 tonnes of annual steel output. The installation of the electric arc furnace requires enhanced electricity management, making this storage project critical for grid stability.

Expanding the energy infrastructure

In addition to the battery system, Ameresco plans to deliver a 25 MW alternating current solar plant, scheduled for operation in 2026. This second asset is expected to further support the site’s energy needs while diversifying its power sources.

Advisory firm GreenFront Energy Partners supported Nucor in contracting and structuring the solar and storage solutions. The project was developed specifically to address the constraints of the local grid serving the steel plant. Such direct integration of energy assets at this industrial scale remains uncommon in the United States.

Matt Blitch, Vice President and General Manager of Nucor’s Kingman plant, welcomed “a site-specific solution,” developed with technical partners and local operators to support the company’s industrial expansion.

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